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Wheat futures plunge in the US and Europe on Wednesday after Russia said it would keep participating in an agreement to export grain from Ukraine via the Black Sea, a reversal of the decided a few days earlier to get out of the deal.
On the Chicago Board of Trade, wheat for December delivery (W_1: COM) settled -6.3% to $8.46 per bushel and December corn (C_1: COM) close the door -1.5% to $6.87 1/2 a bushel, but January soybeans (S_1: COM) finished + 0.4% to $14.54 per bushel.
Wheat also fell in Europe, where the December benchmark Euronext contract has stabilized -4.6% at €341.25/ton.
ETFs: (NYSEARCA:WEAT), (CORN), (SOYB), (NYSEARCA:DBA), (MOO)
Agritel’s Arthur Portier told Reuters that Russia’s return to the Black Sea grain export corridor agreement removes part of the risk premium for exporters, so wheat has lost what they have reached in the past few days, but “we still don’t know if an agreement will be reached. will be extended later this month, so uncertainty remains.”
Grain traders expect Russian President Vladimir Putin to use the agreement’s upcoming expiration date as leverage in negotiationincluding at the G20 Summit in Bali later this month.
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