On Friday, Chicago and Paris wheat futures fell to one-month lows as Turkey’s import ban dampened demand outlooks, overshadowing concerns about weather damage to Russian crops.
Corn and soybean futures also edged lower after a previous session rebound, driven by news of stricter rules on tax credits in Brazil, which had raised hopes for increased U.S. exports.
The most-active wheat contract on the Chicago Board of Trade (CBOT) (Wv1) dropped 2.1% to $6.26-1/4 per bushel by 0953 GMT, marking its eighth consecutive daily decline. Earlier, it reached its lowest level since May 6 at $6.25-1/2, nearly $1 below last week’s 10-month peak of $7.20.
On Euronext, September wheat (BL2U4) fell 4.1% in early trading to 241.00 euros per metric ton, its weakest since May 8.
Turkey announced it would halt wheat imports from June 21 until at least October 15 to protect domestic producers, the agriculture ministry reported.
“This is clearly going to take a major importer out of the market during the first part of the marketing season,” commented a European trader.
Turkey is a significant destination for Black Sea wheat, especially from Russia. The absence of Turkish demand may increase competition in other export markets.
This demand setback diverted attention from weather risks in Russia, where analysts have recently reduced harvest forecasts due to frosts and drought.
Russian Deputy Agriculture Minister Andrei Razin’s statement that Moscow would fulfill all its export commitments also eased fears of potential Russian export restrictions due to weather damage.
In other crops, CBOT soybeans (Sv1) fell 0.6% to $11.92-1/2 per bushel, while corn (Cv1) was down 0.4% at $4.50 per bushel.
Favorable crop conditions in the United States, where farmers have been progressing steadily in planting corn and soybeans and starting winter wheat harvesting, also kept grain prices down.
Prices at 0953 GMT:
| Commodity | Last | Change | Pct Move |
|---|---|---|---|
| CBOT wheat (Wv1) | 626.25 | -13.25 | -2.07% |
| CBOT corn (Cv1) | 450.00 | -2.00 | -0.44% |
| CBOT soy (Sv1) | 1192.50 | -7.50 | -0.62% |
| Paris wheat (BL2U4) | 243.25 | -8.00 | -3.18% |
| Paris maize (EMAc1) | 219.75 | -3.00 | -1.35% |
| Paris rapeseed (COMc1) | 470.75 | -3.75 | -0.79% |
| WTI crude oil (CLc1) | 75.62 | 0.07 | 0.09% |
| Euro/dollar (EUR=) | 1.09 | 0.00 | 0.06% |
Most active contracts – Wheat, corn, and soy in US cents/bushel, Paris futures in euros per metric ton
