COM - Wheat bounces off two-year lows as Ukrainian shipments slow

2023-05-23 18:36:34 ET

U.S. wheat futures rebounded Tuesday from their lowest in more than two years, getting a boost as exports from Ukraine appear to be slowing despite the extension of the Black Sea grain deal.

The latest data from Ukraine showed its exports through the week ended May 21 plunging 78% from the prior week to 118.3K metric tons.

"While the deal has been extended for two months, no inbound vessels were cleared in that week which led to a significant drop in volumes," ING Economics said.

The Ukrainian port of Pivdennyi has halted operations because Russia is not allowing ships to enter it, according to Ukraine officials.

Chicago Board of Trade wheat ( W_1:COM ) for July delivery settled +2.6% to $6.22 1/4 per bushel, after bottoming out at $5.94 1/4 per bushel, the lowest on a continuous basis for the most active contract since March 2021.

The gains in wheat helped support corn futures ( C_1:COM ), with the CBOT July contract closing +1.1% to $5.77 1/2 per bushel.

July soybeans ( S_1:COM ) retreated on profit-taking following their biggest rally in more than eight months on Monday, settling -1.4% to $13.22 1/2 per bushel.

ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )

The U.S. Department of Agriculture's weekly crop progress report , released late Monday, showed corn and soybean planting was running ahead of the average pace of the last five years.

"Positive catalysts are percolating, [but] wait for a buy" on the Teucrium Wheat ETF ( WEAT ), Macrotips Trading writes in an analysis published on Seeking Alpha .

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