Wheat prices rise as Ukraine export deal expires on Monday

Concern about hot weather in North America and the dollar's 15-month low are making US supplies cheaper in export markets

Ukrainian cereals being unloaded from a barge at a port on the Black Sea. File picture

The prices of global wheat rose amid concerns over the future of Ukraine’s wartime grain export shipping deal, expiring on Monday.

Soybeans and corn rose on worry about hot dry weather forecast in US and Canadian grain belts. 

The 15-month lows in the dollar, making US supplies cheaper in export markets, also underpinned prices. The European Commission is helping the United Nations and Turkey to try to extend the deal allowing the Black Sea export of Ukrainian grain, and is open to “explore all solutions”.

“Wheat is being supported today by the fear that the Ukrainian safe-shipping deal will not be extended, along with the weaker dollar which is positive for US exports,” said StoneX commodity risk manager Matt Ammermann. 

There is a reaction to the headlines about corridor expiry, even though there is general belief in the market that an extension may not take place.

Vladimir Putin has said Russia was set to withdraw from the deal unless its own demands are met. “For the wheat price, it is the negotiations of the grains deal between Ukraine and Russia that are now likely to come more into focus,” Commerzbank analyst Thu Lan Nguyen said.

“Although there is some moderate rain expected in coming days, this is forecast to be followed by high temperatures which could remove the benefits of rain,” said Mr Ammermann.

• Reuters