By Kirk Maltais
-- Wheat for December delivery rose 1.9% to $5.79 1/2 a bushel on the Chicago Board of Trade on Thursday in response to news, later denied, that Ukraine was shutting down the Black Sea corridor under threat of Russian warplanes and mines.
-- Corn for December delivery fell 0.2% to $4.79 1/4 a bushel.
-- Soybeans for January delivery fell 0.6% to $13.00 1/4 a bushel.
HIGHLIGHTS
Conflicting Signals: Wheat futures reacted to news reports that Ukraine was suspending use of the Black Sea corridor because of the military risks posed by Russia, but Ukraine's deputy prime minister said the reports were false and that "all available routes established by the Ukrainian Navy are valid and being used by civilian vessels."
The denial came later in the day after much of the trading had already occurred following a move by market participants to hedge themselves against any Black Sea suspension.
Turn on the Waterworks: CBOT corn and soybeans were choppy, ultimately finishing lower, with the forecast in Argentina and Brazil adding support for nascent crops there.
"Corn and soybeans are getting hit from the improving weather conditions and forecasts in South America," said Karl Setzer of Census Agricultural Marketing. "This is taking away what little risk premium there was in those contracts."
Dry areas of both countries have received much-needed rain this week, said agricultural research firm DTN in a note.
INSIGHT
Currency Flex: The U.S. dollar index spent the day higher and has now increased more than 7% since finding a 52-week low in July. A stronger dollar makes U.S. grain exports less attractive on the world stage, and weaker exports are a source of pressure for grains.
"Strong USD is the story in my opinion," said John Payne of Hedgepoint Global. "No one is banking their future on Ukraine grain right now."
Back From the Bottom: Prices for fertilizer in the U.S. are on the rise, with eight major types of fertilizer growing more expensive this month, according to an assessment by DTN. The biggest price jump this week was anhydrous fertilizer, said the firm, up 6% to $809 a ton.
Even so, fertilizer prices across the board remain well below where they were at this time last year, with anhydrous down 43%.
Fertilizer prices have been a consistent concern for farmers attempting to plot out their input costs, making lower prices a good sign for farmer profitability heading into 2024.
Demand Boost: Strong demand for biofuels and cooking oils helped crop trader and processor Bunge raise its outlook for the year and post earnings ahead of Wall Street estimates in its third quarter. The company's crop trading division, its largest, declined 11% in profit as crop prices fell from a year ago, while its oils segment grew 18% during the quarter. The St. Louis company said it expects full-year adjusted earnings of $12.50 a share, up from $11.75.
AHEAD
-- The CFTC is scheduled to release its weekly Commitments of Traders Report at 3:30 p.m. EDT Friday.
-- The USDA is due to release its weekly grains export inspections report at 11 a.m. EDT Monday.
-- The USDA is scheduled to release its weekly crop progress report at 4 p.m. EDT Monday.
-- Patrick Thomas contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
10-26-23 1603ET
