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 U.S. sanctions.
Corn climbed on smaller-than-expected U.S. stockpiles, while
soybeans sank after the USDA noted increased stores of the
The most-active wheat contract on the Chicago Board of Trade
(CBOT) rallied 25-1/4 cents to $9.21-1/2 per bushel, after
reaching $9.45-3/4 a bushel, its highest since July 11. For the
week, the contract gained 4.66%, its biggest weekly gain since
CBOT corn firmed cents 8 cents to $6.77-1/2 per
bushel, after climbing to $6.96-1/4, its highest since Sept. 21.
Soybeans lost 46 cents to settle at $13.64-3/4 per
bushel, its lowest since Aug. 4., logging a 4.28% weekly
decline, its biggest since the week ended June 24, 2022.
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 bushels.
"We chewed through a lot more corn in the livestock sector,
because of the drought," said Mike Zuzolo, president of Global
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 after holding what Russia called referendums in occupied
areas. Western governments and Kyiv said the votes breached
international law and were coercive and non-representative.
Tensions were also heightened by a leak from Russian gas
pipelines to Europe, raising doubts about whether a United
Nations-supervised shipping corridor for Ukrainian grain would
(Reporting by Christopher Walljasper; Additional reporting by
Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by
Richard Chang and David Gregorio)