Putin announces annexation of occupied Ukrainian zones
U.S. wheat crop shrinks on drought conditions
Corn climbs on smaller stocks; soybeans dip after
CHICAGO, Sept 30 (Reuters) -
Chicago wheat spiked on Friday, supported by a drastic cut
to U.S. production estimates by the Agriculture Department, and
Russia's annexation of parts of Ukraine followed by increased
Corn climbed on smaller-than-expected U.S. stockpiles, while
soybeans sank after the USDA noted larger-than-expected stores
of the oilseed.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) climbed 40 cents to $9.36-1/4 a bushel by 12:29 a.m
CBOT corn added 18-3/4 cents at $6.88-1/4 a bushel
while soybeans fell 28 cents to $13.82-3/4 a bushel.
The 2022 U.S. wheat harvest was smaller than previously
forecast, the USDA said in its annual Small Grain Summary
report, cutting its assessment of the U.S. wheat crop to 1.650
billion bushels. This compared with analysts' average estimate
of 1.778 billion bushels in a Reuters poll, and 1.783 billion
bushels in the USDA's August assessment.
"I see (U.S. wheat) ending stocks dropping down below that
500 million bushel level and getting kind of snug, particularly
for our quality milling wheat," said Arlan Suderman, chief
commodities economist for StoneX.
Corn also found support from tighter-than-expected
stocks, with the USDA pegging corn stocks at 1.377 billion
bushels, down from trade expectations of 1.512 billion
"We chewed through a lot more corn in the livestock
sector, because of the drought," said Mike Zuzolo, president of
Global Commodity Analytics.
Soybean futures sank after the agency upgraded its
stocks assessment to 273.76 million bushels, significantly
higher than the average trade guess of 242 million bushels.
Heightening Russia-Ukraine tensions supported wheat and
corn futures. Russian President Vladimir Putin proclaimed the
annexation of a swathe of Ukraine in a Kremlin ceremony on
Friday, noting that attacks against any of this territory would
be considered aggression against Russia.
Tensions over the conflict, also heightened by a leak from
Russian gas pipelines to Europe, have raised doubts about
whether a United Nations-supervised shipping corridor for
Ukrainian grain would last.
(Reporting by Christopher Walljasper; Additional reporting by
Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by