Wheat prices down on Russia-Ukraine ceasefire hopes

On Wednesday, wheat prices dropped as the peace talks between Russia and Ukraine in Turkey raised hopes of a ceasefire.

Subsequently, U.S. wheat futures declined 0.53% or 5.50 points to $1,008.90 per metric ton. Then, London wheat contracts plummeted 1.07%, or 3.25 points to $394.37 per metric ton.

On Tuesday, Moscow vowed to scale down its military operations in Kyiv. However, the United States warned the threat was not over.

Then, Ukraine proposed adopting a neutral status as a sign of progress in face-to-face negotiations.

The month-long geopolitical conflict between the world’s two significant grain exporters has disrupted global supplies. At the same time, it fueled the prices of major agricultural products.

The war halted trade routes from the Black Sea region to other parts of the world. The continuing war could further cut supplies of corn and wheat available to the global market.

Eventually, experts anticipated the United States to increase its exports to help fill the gap. The additional demand for American products should increase the prices paid to farmers.

In the stated case, analysts expected a 200.00 million bushel increase in exports for each major commodity.

This upturn in outputs would increase the 2022/23 average on-farm price for wheat by approximately 50.00%.

Egypt, the world’s biggest wheat importer, grappled with the surge in bread and flour prices.

Correspondingly, a delegation from the country will visit India in the first week of April to facilitate wheat imports. This move is an effort to secure supplies and tide over shortages.

Delhi is the world’s second-biggest producer of the grain. It has emerged as a leading supplier to host countries that struggled with cargo disruptions.

Soybean, Corn Rise as Wheat decline

Conversely, soybean futures increased 0.29%, or 4.75 points to $1,647.75 per metric ton. Similarly, corn contracts strengthened 1.05% or 7.50 points to $733.50 per metric ton.

The ongoing crisis highlighted the European Union’s structural deficit in maize. Given the absence of Ukrainian imports, the region’s stock could hit its lowest level since 2013.

Additionally, the EU could not easily call on South American supplies due to restrictions on genetically modified corn. For instance, the majority of Argentina’s production is GM.

In line with this, Spain appealed to the organization to relax its import controls. The country temporarily relaxed restrictions on residues from pesticides used in the U.S.

Furthermore, the United Nations food chief warned that the crisis in Ukraine threatens the World Food Programme. The conflict could devastate the efforts to feed 125.00 million people globally.