GRAINS-Wheat, corn sag as first grain shipment leaves Ukraine; soy slides 4%

(Updates with closing U.S. prices, USDA crop ratings)

By Julie Ingwersen

CHICAGO, Aug 1 (Reuters) – U.S. corn and wheat futures fell
on Monday as the first grains ship left a Ukrainian port using a
newly agreed safe shipping channel, raising hopes that Ukraine’s
sea-borne exports can resume on a large scale after being
blocked by war.

Soybean futures tumbled 4% on profit-taking after the
benchmark November contract surged nearly 12% last week,
and on political tension between the United States and China,
the world’s top soy buyer, over Taiwan.

Chicago Board of Trade November soybeans settled down
62-1/2 cents at $14.06 per bushel. December corn ended
down 10-1/4 cents at $6.09-3/4 a bushel and CBOT September wheat
fell 7-1/2 cents to end at $8.00-1/4.

Broad weakness in commodities including crude oil
hung over the grain markets, tied to recession fears. Corn and
soy futures sometimes follow trends in crude oil [O/R] due to
soyoil’s use in biodiesel and corn’s role as the main U.S.
feedstock for ethanol.

“The things that took (CBOT 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,” said Don Roose, president of Iowa-based
U.S. Commodities.

Traders continue to monitor crop weather closely. After the
CBOT close, the U.S. Department of Agriculture’s weekly
condition ratings improved for soybeans and spring wheat and
held steady for corn, defying trade expectations for downgrades
in all three crops following a hot week in the U.S. Corn Belt.

In the Black Sea, a ship carrying grain left a Ukrainian
port for Lebanon on Monday under a safe passage agreement, the
first departure since the Russian invasion blocked Ukraine’s sea
shipping five months ago.

However, key arrangements including procedures for ships
still need to be worked out before empty vessels can come in and
pick up cargoes from Ukraine using the new grains corridor, a
senior London marine insurance market official said.

(Reporting by Julie Ingwersen in Chicago
Additional reporting by Mark Weinraub in Chicago, Michael Hogan
in Hamburg and Naveen Thukral in Singapore
Editing by Tomasz Janowski and Matthew Lewis)
((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters
Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))

Keywords: GLOBAL GRAINS/ (UPDATE 3, PIX)

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