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By Cassandra Garrison
MEXICO CITY, March 20 (Reuters) – Chicago Board of Tradegrain futures fell on Monday after a deal to export grains by sea from Ukraine was extended, allowing the flow of crops to global buyers, analysts said.
Markets also were focusing on the Federal Reserve’s interest rate decision on Wednesday. Traders and economists remain split on whether the U.S. central bank will raise its benchmark overnight interest rate on Wednesday, as markets remain on edge in the midst of global banking strains.
“Traders, especially small traders, have run to the sidelines in anticipation of the Fed and its decision and they’ll watch to see how outside markets, the bond market, crude oil and the dollar react,” said Mike Zuzolo, president of Global Commodities Analytics and Consulting.
Russian President Vladimir Putin said that Russia would provide grain to African countries for free if the grain deal is not extended in May.
Chicago Board of Trade most-active wheat Wv1 was down 2.01% to $6.96 a bushel by 10:30 a.m. CDT (1530 GMT), while corn Cv1 was down 0.71% to $6.29-3/4 a bushel. Soybeans Sv1were up 0.3% at $14.81 a bushel after dropping earlier to a three-month low.
Soybean traders were focused on ample supplies from a record crop in Brazil coupled with rains expected to pick up in Argentina, Zuzolo added.
Brazil’s record soybean crop this season will allow the nation to boost exports to China while also increasing domestic soybean processing.
(Reporting by Cassandra Garrison, Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Susan Fenton and Paul Simao)
((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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