Wheat rebounded from its biggest drop in a year in Chicago as unrest in Ukraine flared, with deaths over the weekend and pro-Russian forces in the country’s east saying they’re not bound by a deal to ease tensions.
Russia and Ukraine are forecast to account for 18 percent of world wheat exports in 2013-14, International Grains Council data show. Tension between the two countries has raised concern shipments from the Black Sea region will be disrupted.
“The ongoing uncertainty between Russia and Ukraine continues to take effect,” U.K. grain trader Gleadell Agriculture wrote in a daily comment. “Early declines for U.S. wheat yesterday were put down to improving weather conditions across the U.S. Plains and Midwest.”
Wheat for July delivery rose 0.8 percent to $6.8075 a bushel on the Chicago Board of Trade at 5:19 a.m. local time, after sliding 3.4 percent yesterday, the biggest drop since April 1 last year. Chicago wheat has gained 12 percent this year.
Milling wheat for November delivery traded on NYSE Liffe in Paris fell 1.7 percent to 203.75 euros ($281.36) a metric ton, after not trading yesterday.
Rains in central Nebraska and central Kansas mid-week will improve crop conditions, forecaster MDA Information Systems LLC wrote in a report yesterday.
A clash at a roadblock in eastern Ukraine left at least three dead over the weekend, according to the country’s Interior Ministry. A pro-Russian forces leader in the region said yesterday the militants weren’t party to a deal reached in Geneva by Ukraine, Russia, the U.S. and the European Union.
Moisture shortages persist across northern Europe after rain in the past week, data from World Ag Weather show.
“In France and a large part of Europe, the weather conditions remain adverse with a moisture deficit that persists, despite some local rainfall and showers,” Paris-based farm adviser Agritel wrote in a market comment.
All climate models surveyed by Australia’s Bureau of Meteorology indicate an El Nino event, which typically brings drought to the country’s wheat regions, is likely this year.
Corn for July delivery rose 1 percent to $4.985 a bushel in Chicago, while soybeans for the same month rose 0.3 percent to $14.9225 a bushel.
Ukraine corn shipments showed a “spectacular drop” last week, falling to 176,000 tons from more than 450,000 tons in the prior week, according to Agritel, which has an office in Kiev.
To contact the reporter on this story: Rudy Ruitenberg in Paris at firstname.lastname@example.org