Wheat Grows as Russia Halts Exports

Corn and soybeans dropped on worries that demand from top consumer China could reconcile because of increasing coronavirus cases.

The most-active wheat contract on the Chicago Board of Trade (CBOT) (Wv1) rose 1.4% to $10.85 a bushel, as of 0401 GMT, after falling 15% in the previous four sessions.

Russia on Monday temporarily restricted grain exports to ex-Soviet countries and most sugar exports. Nevertheless, a senior minister stated it would provide special export licenses to traders within its current quota.

Moreover, deepening drought in the southern U.S. Plains threatens the region’s winter wheat crop just as the Ukraine crisis dents global supplies.

Corn (Cv1) fell 0.77% to $7.42-1/2 a bushel, and soybeans (Sv1) fell 0.87% to $16.56 a bushel.

Beijing Sets Restrictions

Near-term feed demand could intervene in China as COVID-19 cases are rising at an alarming pace; this is forcing Beijing to charge more restrictions, said a New Delhi-based trader with a global trading firm.

On Tuesday, China registered a steep jump in daily coronavirus infections, with new cases more than doubling from a day earlier to a two-year high as a virus outbreak developed rapidly in the country’s northeast.

The trader stated that soybeans have also come under pressure as palm oil and soy oil prices have reduced the crush margins snappily in a week.

Malaysian palm oil futures dropped 3% on Tuesday, extending losses to a fourth session.

The market is closely watching progress in Russia-Ukraine peace talks, traders stated.

Ukraine’s President Volodymyr Zelensky declared late on Monday that negotiations with Russia continued on Tuesday.

Oil prices skated to a two-week low on continued ceasefire talks between Russia and Ukraine and worries regarding demand in China after a wave in coronavirus cases.