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Russia accuses Ukraine of drone attack on Kremlin
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Eyes on talks on Black Sea grain export deal
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Recent rains may not be enough to save U.S. wheat-traders
(Adds closing prices, changes headline, changes lead)
By Cassandra Garrison
MEXICO CITY, May 3 (Reuters) - Chicago wheat rebounded
from a 25-month low to close higher on Wednesday, edging up on
fresh tensions between Russia and Ukraine that cast doubt on the
future of the Black Sea grains corridor, analysts said.
Corn also gained on the tensions. Soybeans, meanwhile,
followed with a rally after touching a 7-month low in the
session.
Russia accused Ukraine on Wednesday of attacking the Kremlin
with drones overnight in a failed attempt to kill President
Vladimir Putin.
Later, Ukraine President Volodymyr Zelenskiy said that
Russia did not appear to be interested in extending the Black
Sea grain deal, but that Kyiv was focused on looking for
partners to fulfil the deal and was not looking for Russian
interest.
Talks were due to be held in Moscow on May 5, but it was
unclear whether all parties were in agreement.
"It's a combo of being oversold, heavily short by the funds,
the Russia Ukraine issue escalation, the tactic to negotiate the
Black Sea and people coming out and saying the rains that
happened in the Plains may not have helped the Kansas City
wheat, that the damage is done," said Craig Turner, commodities
trader at Daniels Trading.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) gained 30-1/2 cents to $6.39-3/4 a bushel, after it
earlier dipped to a session low of $6.03-3/4, the lowest since
April 2021.
Corn ended 8-1/2 cents higher at $5.88-1/2 a bushel
and soybeans settled up 6-3/4 cents at $14.17-1/2 a
bushel, after dropping to $13.92-1/4 in the session, the lowest
since Oct. 2022.
Ukraine's grain exports could fall to around 26 million tonnes in the 2023/24 season as harvest has sunk, largely due to Russia's invasion, a senior ministry official said. (Reporting by Cassandra Garrison in Mexico City, Naveen Thukral; Editing by Eileen Soreng, Deepa Babington and Sandra Maler)
