Wheat prices had risen sharply earlier in the year, as exports of Russia and Ukraine over the Black Sea had previously stalled. Alternative shipping routes have helped prevent supply shortages that traders fear. The fact that both countries shipped increasing amounts of grain from these routes and confirmed that they would participate in the tripartite peace talks with the United States in Abu Dhabi on 10-11 November strengthened the expectation that the Black Sea shipping could be reopened.
Commonwealth Bank analyst Dennis Voznesenski said Russia and Ukraine's high exports, hopes for a Black Sea deal, and Russia's allowing ships to leave the Azov Sea put pressure on wheat prices. Voznesenski said the market is not expected to decline further without concrete developments in the re-opening of the Black Sea ports. Since the early September peaks, CBOT wheat has declined by about 25%, corn by 20% and soybeans by 10%.
Maize futures increased by 0.4% to $4.46 per bushel, while soybeans rose 0.1% to $12.03-1/2. The contract for both products had declined to the lowest levels of several months in the previous session. Commodity trading company StoneX has raised US corn and soybean harvest forecasts; traders expect updated US Department of Agriculture forecasts to be released next week. US soybean harvest is expected to reach a record high, while corn harvest is expected to reach the second-largest level, while rainfall in some regions has slowed the harvest.
