Chicago Wheat Falls as Türkiye Prepares Black Sea Grain Plan

Chicago Wheat Falls as Türkiye Prepares Black Sea Grain Passage Plan

Chicago wheat futures fell on Tuesday after Türkiye said it was in contact with Russia and Ukraine about grain shipping through the Black Sea. Soybeans gained, while corn prices declined.

The most-traded wheat contract on the Chicago Board of Trade fell 0.29% to $7.71¾ per bushel by 0320 GMT. CBOT corn dropped 0.2% to $5.36¾ per bushel, while soybeans gained 0.8% to $12.98½ per bushel.

Türkiye Prepares Plan for Safe Grain Passage

Türkiye said it had prepared a plan for the safe passage of grain through the Black Sea.

Türkiye has repeatedly expressed its willingness to revive a United Nations-brokered agreement that previously enabled grain exports from Ukraine during the war.

Wheat futures reached a three-year high last week, supported by reports that Russian strikes could target central Kyiv as well as critical infrastructure elsewhere in Ukraine.

Escalating tensions have increased uncertainty over the global availability of wheat and other grains.

Attacks in recent months have halted almost all grain shipments through ports in the Black Sea and the Sea of Azov. These routes previously accounted for around 70% of Russian grain exports.

Traders remain concerned about the possibility of a prolonged disruption to Russian and Ukrainian grain exports from the Black Sea region.

Russian grain exporters are rerouting shipments toward the Baltic Sea following Ukrainian drone attacks in the Black Sea and the Sea of Azov, according to traders and analysts cited by Reuters.

Soybean Prices Rise on Oil and Export Demand

Soybean prices were supported by higher oil prices and strong export demand.

The oilseed market often follows movements in crude oil prices because soybeans are widely used as a feedstock for biofuel production.

Oil prices rose on Tuesday after fighting resumed between the United States and Iran in the Middle East, renewing concerns about potential supply disruptions in one of the world's key crude-producing regions.

US soybean export demand also remained strong.

The United States Department of Agriculture reported that exporters sold 159,000 tons of United States soybeans to unknown destinations.

US Crop Conditions

The United States Department of Agriculture lowered its assessment of the condition of the country's soybean crop in its weekly report on Monday.

According to the report, 58% of the soybean crop was rated in good-to-excellent condition, down from 60% a week earlier.

For corn, the United States Department of Agriculture said 57% of the crop was in good-to-excellent condition, unchanged from the previous week.

Türkiye's preparations for a safe grain passage through the Black Sea come as traders closely monitor disruptions to Russian and Ukrainian exports and their potential impact on global grain markets.