Wheat Futures Decline on Profit-Taking Ahead of US Market Open

Chicago Board of Trade (CBOT) wheat futures are poised to open lower on Tuesday, with market analysts attributing the pressure to profit-taking in overnight trading. Prices were projected to fall by 5 to 8 cents per bushel at the start of the U.S. session.

Pre-Market Price Action

Key wheat futures contracts saw notable declines ahead of the opening bell:

• CBOT December soft red winter wheat (ZW) fell 7.5 cents to $7.19-1/4 per bushel.
• Kansas City December hard red winter wheat (KW) dropped 11.25 cents to $7.83-1/4 per bushel.
• Minneapolis December spring wheat was last quoted down 8.25 cents at $7.38 per bushel.

Black Sea Supply Routes in Focus

Geopolitical factors continue to influence the grain markets. The Kremlin stated on Tuesday that diplomatic contacts have been made regarding a Turkish proposal for a secure grain corridor in the Black Sea. Concurrently, Russia is actively developing alternative export routes.

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Russia's Arctic port of Murmansk is reportedly preparing to ship grain from the country's south as early as next month, utilizing equipment typically used for fertilizer. This move comes as Black Sea shipping lanes remain disrupted by Ukrainian drone attacks, according to the source report.

Ukrainian Harvest Faces Weather Delays

On the supply side, Ukraine's Agriculture Ministry reported on Tuesday that the country has harvested 33 million metric tons of grain from 7 million hectares, representing 61% of the total sown area.

However, the pace of the harvest could slow significantly. Analysts at the farmers' union UAC said on Tuesday that heavy rainfall is expected across most of Ukraine for at least the next seven days, which is likely to delay the collection of late-maturing grains and oilseed crops.