Wheat rebounds from four-month low as Black Sea grain shipments resume

what happened

According to Reuters, wheat futures on the Chicago Board of Trade firmed on Thursday as bargain buyers stepped in after the most-active contract hit its lowest level since early July the previous day. Support came from Russian authorities allowing grain-carrying vessels to depart the Sea of Azov, a waterway that had been closed to traffic because of Ukrainian drone attacks.

Sources told Reuters that the passage permits through the Kerch Strait run until November 15, and that a Russian naval convoy would escort the ships across the Black Sea. As of 00:17 GMT, CBOT wheat was up 0.4% at $6.01-1/2 a bushel, soybeans slipped 0.1% to $12.36-3/4, and corn was flat at $4.51-3/4.

Pressure on soybean and corn prices continues from a large US harvest that has left ample supplies in the market.

why it matters

The wheat bounce is modest. Clearer logistics out of the Sea of Azov reduce near-term supply risk, but abundant American harvest volumes keep a lid on the market. Traders will watch whether the permits hold through mid-November and how quickly actual shipments pick up.

market impact

Wheat and soybeans: Azov shipments resuming and a large US harvest weigh on prices

• ↔CBOT wheat mixed — reopened Kerch Strait passage supports supply, while the rebound from the low lifts prices
• ▼CBOT soybeans pressure down — a large US harvest keeps supplies ample and weighs on prices

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