U.S. soybean futures sank 4% Monday on profit-taking after the benchmark November contract surged nearly 12% last week, while corn and wheat futures also fell as the first grains ship left a Ukrainian port since the start of Russia’s invasion in late February.
CBOT November soybeans (S_1:COM) settled -4.3% to $14.06 per bushel in response to the Ukrainian grain shipment and as U.S. House Speaker Nancy Pelosi’s planned trip to Taiwan prompted threats of retaliation from China.
Broad weakness in commodities including crude oil also hung over the grain markets, tied to recession fears.
“The things that took [grain futures] up starting in February were the energy market running to the upside, and Ukraine not being able to ship grain. Those bull stories are getting unwound today,” Don Roose, president of Iowa-based U.S. Commodities, told Reuters.
Greater Odessa ports reportedly have ~600K tons of grains ready to ship in 16 vessels; if the newly agreed safe shipping corridor proves reasonably successful, it would go a long way to easing shortages of grains across Europe, the Middle East, Africa and Asia.