SINGAPORE- Chicago soybean futures rose for the first time in four sessions on Wednesday, as the market recovered from a more than one-week low, although growing inflationary concerns kept a lid on prices.
Corn and wheat futures lost more ground.
World stocks fell for a second day in a row on Tuesday while government bond yields and the US dollar clung to multi-year highs, as surging inflation led investors to brace for what could be the largest US interest rate hike in 28 years this week.
“Global trends in inflation and growth are increasingly a concern, and worryingly, a recessionary base case is where many investors appear to be heading,” said Stephen Innes, managing partner at SPI Asset Management.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2 percent to $17.01-1/4 a bushel, after hitting its weakest since June 6 at $16.90 a bushel earlier in the session.
Corn fell 0.2 percent to $7.66-3/4 a bushel and wheat gave up 0.9 percent to $10.40-3/4 a bushel.
Concerns over rising global inflation are driving stocks and commodity markets lower, even though tightening grain and oilseed supplies are providing a floor under the agricultural markets.
The United States and other key suppliers need to produce big crops as Russia’s invasion of Ukraine has disrupted grain exports from the Black Sea.
The Russia-Ukraine war will create a global wheat shortage for at least three seasons by keeping much of the Ukrainian crop from markets, pushing prices to record levels, Ukraine’s agriculture minister told Reuters.
Ukraine, sometimes known as Europe’s bread basket, has had its maritime grain export routes blocked by Russia and faces a maelstrom of other problems, from mined wheat fields to a lack of grain storage space. — Reuters
