Chicago wheat futures edged down on Wednesday, as traders gauged the prospect of higher exports after Russian President Vladimir Putin expressed readiness to allow blocked Ukrainian grain vessels from Black Sea ports.

Corn ticked lower, while soybeans rose slightly.

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.18% to $10.85-3/4 a bushel.

Corn shed 0.66% to $7.48-1/2 a bushel and soybeans rose 0.15% to $16.85-3/4 a bushel.

A senior U.N. official had "constructive discussions" in Moscow with a Russian official on facilitating Russian grain and fertilizer exports to global markets, U.N. spokesman Stephane Dujarric said on Tuesday.

Putin said Russia was willing to facilitate Ukrainian wheat exports through the Black Sea, as well as shipments of Russian fertilizer, if western sanctions were eased, according to a Kremlin readout of talks with the president of Turkey.

The market is still reacting to the Russia news, said a China-based trader.

Despite the improved sentiment, uncertainty over global grains supply lingers as the conflict between Russia and Ukraine, the world's two major grains producers and exporters, continues while sanctions on Russia, which Putin wanted lifted, remain.

The U.S. Department of Agriculture (USDA) said U.S. farmers had planted 73% of their intended spring wheat acres as of Sunday, behind the five-year average of 92%. Ratings of the winter wheat crop were still among the lowest on record for this time of the year, the USDA said in a report released on Monday.

Corn planting was 86% complete, near the five-year average pace of 87%, while soybeans planting was 66% complete, behind the five-year average of 67%, according to the report.

Brazilian meatpackers and livestock producers are boosting purchases of Paraguayan corn this season, industry sources and analysts told Reuters, a move driven by high domestic prices and expectations of large corn exports from Brazil.

Egypt banned trading of wheat by third parties until the end of August, the cabinet said, preventing any sales other than to the government.

Commodity funds were net sellers of Chicago Board of Trade corn, wheat, soybean soymeal and soyoil futures contracts on Tuesday, traders said.

Global equity markets dipped while U.S. Treasury yields rose sharply on Tuesday, as investors weighed the prospects of higher inflation following a phased ban of Russian oil imports by the European Union that has lifted crude prices to new highs. (Reporting by Hallie Gu and Dominique Patton; Editing by Rashmi Aich and Sherry Jacob-Phillips)


Reuters