Wheat futures tumble after Russia rejoins Black Sea grain corridor deal

Markets reassured by recent deal announcement

Wheat futures plunged, and market participants sighed with relief after Russia said they would rejoin the Black Sea grains export corridor accord after pulling out of it this weekend

after a reported drone attack on its fleet in Sebastopol.

“The only single reason I see wheat lower today is the Russia announcement. Nothing else suggests a bearish undertone.” senior grains and oilseed commodity analyst at Futures International Terry Reilly told Fastmarkets Agriculture.

As of 1139 Eastern time, Chicago SRW December futures were down 6.3% on Tuesday’s settlement at $8.45 per bushel, while March tumbled 6% at $8.64 per bushel.

Kansas City HRW December and March futures contracts both dropped 4.6% settlement to $9.44 per bushel and $9.41 per bushel, respectively.

Futures surged on Monday after Russia announced its withdrawal from the grain corridor agreement, which threatened to end grain shipments from deep-water ports in Ukraine, the world’s fifth-biggest wheat exporter, prior to Russia’s invasion in February.

“Yesterday and the previous day speculative short covering as Chicago led wheat complex, today Chicago leads all lower. Headline trading 101,” Jeffrey McPike of McWheat Inc. told Agricensus.

In Europe, the front-month December Euronext milling wheat futures contract, which is often known by its old name of Matif, traded at €339.75 per tonne, down €18 per tonne, while March decreased by €16.75 per tonne to €340 per tonne.

Russia and Ukraine, which were wheat importers when they were part of the Soviet Union, have boosted production over the last 30 years and were responsible for more than 20% of global exports in 2021.

Corn futures in Chicago followed wheat lower, with December futures down by 1.8% to $6.85 per bushel and March down by 1.7% to $6.90 per bushel.

Keep up to date with the wheat market and trends shaping the agricultural landscape, visit our dedicated wheat market analysis page.

What to read next
Brazilian soybean exports maintained a robust pace in July, surpassing last year's figures, while corn shipments faced challenges in keeping up with demand.
In the 2023/24 marketing year, Russian wheat exports surpassed 55.4 million tonnes, driven by increased harvests and competitive prices, although restrained by government-mandated floor prices and shifting dynamics among exporters.
The start of the Black Sea region’s new wheat marketing year from Monday, July 1 offers an opportunity to look back on the previous marketing year and to focus on Ukraine’s experience and the effect that the self-declared humanitarian corridor has had on the country’s agricultural exports.
US corn futures dropped for a sixth consecutive trading day on Wednesday June 26 while rain continued to fall in growing areas of the Midwest, with market participants positioning before a USDA acreage report to be released on Friday.
Updated forecast by trade association Cocereal pegs 2024 wheat crop slightly higher than previous projections
A report by the USDA forecasts an increase in US ending stocks for 2024/25 to 769 million bushels, alongside a slight decrease in global stockpile estimates.