Wheat Declines as Black Sea Export Concerns Ease; Corn Drops

Aug 18, 2014 3:41 pm ET

Aug. 18 (Bloomberg) -- Wheat futures fell as concerns eased that the conflict between Ukraine and Russia will disrupt exports from the Black Sea region. Corn dropped, snapping the longest rally since February.

Ukraine’s foreign minister cited “moderate progress” in talks on the conflict, while his Russian counterpart said they haven’t reached a resolution. The countries combined will account for about a fifth of global wheat shipments this year, the U.S. government estimates. Futures rose 1.9 percent on Aug. 15 on escalating tensions in Eastern Europe.

“A lot of people were expecting some type of news over the weekend, some further escalation in Ukraine and Russia,” Rich Nelson, the chief strategist at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “Without such, that premium’s off the table this morning.”

Wheat futures for December delivery fell 1.6 percent to close at $5.5425 a bushel at 1:15 p.m. on the Chicago Board of Trade, the first decline in three sessions.

The price touched a four-year low of $5.185 on July 29 amid prospects of ample world grain supplies.

Corn futures for December delivery dropped 1.5 percent to $3.715 a bushel. Yields in parts of Ohio and South Dakota will climb from last year, according to estimates today from the Pro Farmer Midwest Crop Tour.

Soybean futures for November delivery rose 0.5 percent to $10.5775 a bushel. Crop-tour samples indicated higher output in South Dakota and little changed in Ohio.

--With assistance from Whitney McFerron in London.