Wheat futures fell sharply on Friday, extending Thursday’s retreat as traders continued to strip geopolitical risk premium out of the market amid renewed talk of Russia-Ukraine peace negotiations.
Corn and soybeans also finished lower ahead of the long holiday weekend, but their losses were much more modest.
Russian President Vladimir Putin’s comments this week that a peace agreement remained possible were followed by reports today that U.S. envoys were expected to visit Russia and Ukraine for talks over the weekend, heaping more pressure on wheat. December Chicago wheat tumbled 20 ¼ cents to $7.34, and December Kansas City lost 13 ¼ cents to $8.02 ¼. December Hard red Spring was down 12 cents to $7.64 ½, and December Minneapolis fell 20 ½ cents to $7.45.
Corn slipped more moderately as traders reduced risk ahead of the three-day weekend. Concerns about declining U.S. yield potential and continued hot weather helped limit the downside. December corn eased 4 cents to $5.36 ¾, and March was down 3 ¾ cents to $5.52 ¼.
Soybeans also declined despite another USDA announcement of 250,600 tonnes of U.S. soybeans sold to unknown destinations. The market remained supported by late-season U.S. weather concerns and export demand, but recent gains left it vulnerable to pre-holiday profit taking. November and March beans both closed 6 ½ cents lower at $13.09 ¾, and $13.30 ¼, respectively.
