GRAINS-Wheat slips further as Ukraine export risks recede

Kitco Media
By Reuters
Published:
Updated:
Reuters



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EU transit plan, Black Sea inspections ease Ukraine fears

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Corn, soybean markets monitoring spring planting weather

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Grain markets await weekly U.S. export sales data



(Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, April 20 (Reuters) - Chicago wheat lost more ground on Thursday as fears of Ukrainian exports being halted were allayed by the resumption of vessel inspections under a wartime deal and by European Union steps to allow transit of grain via land routes to continue. Soybean and corn futures also extended losses, pressured by crude oil while investors monitored U.S. spring planting weather. Inspections of ships carrying Ukrainian grain from Black Sea ports resumed on Wednesday under a UN-brokered deal, though Kyiv faces a struggle to secure an extension of the deal with Moscow. A EU plan on Wednesday to permit Ukrainian grains to continue being transported across five countries in the east of the bloc for onward export reduced the risk of a halt to Ukrainian shipments via the EU. Wheat markets had rallied at the start of the week, recovering ground after hitting their lowest since 2021 in late March, on the threat of a squeeze on Ukrainian exports. "The more reassuring announcements on the continuity of Ukrainian grains' export flow limit the rebound movement recently observed in wheat," consultancy Agritel said. Large Russian exports and favourable prospects for this year's Russian harvest were also tempering supply concerns. Weather forecasts predicting showers in the week ahead in some drought-affected U.S. winter wheat belts further curbed prices. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.1% at $6.85 a bushel by 1113 GMT. CBOT soybeans eased 0.7% to $14.69 a bushel and corn lost 0.8% to $6.31 a bushel. Rain may hamper early U.S. spring planting of corn and soy but boost soil moisture for later growth. Traders were watching for weekly U.S. grain export sales figures later on Thursday. Economic worries hung over crude oil and wider financial markets. Crops like corn and oilseeds are sensitive to oil prices as they are used in biofuel. "The macro mood is back on the bearish side of the ledger," Peak Trading Research said.


(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Uttaresh Venkateshwaran)

Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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