Wheat dropped after rising the most since 2012 and corn fell from a six-month high as concern eased that supply from Ukraine will be disrupted by Russia’s military incursion, amid reports grain loading continued as normal.
Loading of Ukrainian wheat exports was unaffected as of yesterday, with the main grain ports functioning, according to Olivier Bouillet, the manager of the Kiev office of Paris-based farm adviser Agritel SA.
"Unrest between Ukraine and Russia is overshadowing any U.S. news at this time," Paul Georgy, the president of Allendale Inc., wrote in a comment. "Reports out of the region suggest ships are still being loaded in Ukrainian ports."
Wheat for May delivery dropped 0.9 percent to $6.2575 a bushel on the Chicago Board of Trade by 8:32 a.m., while November-delivery milling wheat fell 0.4 percent to 192.50 euros ($264.75) a metric ton on NYSE Liffe in Paris. Corn dropped 0.6 percent to $4.6775 a bushel in Chicago after reaching $4.8275 yesterday, the highest since Sept. 3.
Ukraine is forecast to be the world’s third-biggest corn exporter and sixth-biggest wheat shipper in the 2013-14 season, International Grains Council data show. Wheat rose 4.9 percent in Chicago yesterday and corn gained 1.5 percent amid concern trade might be disrupted after Russian troops moved into the Crimea region, southeast of Ukraine’s main grain-shipping ports
The view on Ukraine’s insurance risk was not changed by the Joint War Committee, which yesterday decided not to add the country to the list of areas where there’s a risk of damage to ships or where vessels may be confiscated, according to Lloyds Market Association.
Agritel’s Bouillet said 500,000 tons of corn and 55,000 tons of wheat was loaded at Ukraine’s ports last week.
Business continues as usual in Ukraine and Russia, according to Andrey Verevskiy, chairman of Kernel Holding SA, the biggest Ukrainian agricultural producer. U.S. Secretary of State John Kerry heads to Kiev today after Russia told the United Nations that its intervention in Crimea is legal.
Ukraine is forecast to ship 18.3 million metric tons of corn in the 2013-14 season through June from 13.6 million tons a year earlier to become the leading exporter after Brazil and the U.S., according to the International Grains Council. The nation may boost wheat exports this season to 9.5 million tons from 7.1 million a year earlier, making it the sixth-biggest supplier, the IGC estimates.
Soybeans for May delivery gained as much as 0.6 percent to $14.1775 a bushel in Chicago before trading at $14.1375.