GRAINS-Wheat jumps after Russia says Cargill to stop grain exports

By Sybille de La Hamaide and Naveen Thukral

PARIS/SINGAPORE, March 29 (Reuters) – Chicago wheat futures rose to a four-week high on Wednesday after Russia said Cargill had decided to stop exporting grains from Russia, the world’s largest wheat exporter, while corn edged higher and soybeans were flat.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 2.1% to $7.14-3/4 as of 1130 GMT after hitting $7.17 in earlier trade, a price not seen since March 2.

Corn Cv1 added 0.7% to $6.52 a bushel and soybeans Sv1 were unchanged at $14.58-1/2 a bushel.

Wheat, which had been trading in negative territory in early overnight trade, rose after Russia’s agriculture ministry said global commodities trader Cargill had told the ministry that it will stop exporting Russian grain from the start of the next exporting season, which begins on July 1.

“For an importing country such as Morocco, negotiating with a Russian company is less reassuring than with a U.S company,” one trader said.

“So apart from countries like Egypt and Algeria the others will negotiate with more reliable countries,” he added.

Russian exports could also be hampered if Moscow was to recommend a temporary halt in wheat and sunflower exports, as reported last week by Russian business newspaper Vedomosti.

Sources later told Reuters that Russia had no plans to halt wheat exports but wanted exporters to ensure prices paid to farmers were high enough to cover average production costs.

Corn rose slightly in positioning ahead of Friday’s annual U.S. Department of Agriculture (USDA) planting intentions report.

Soybeans were virtually unchanged after prices hit a one-week high in the previous session on concerns over lower production in drought-hit Argentina.

Argentina’s Buenos Aires grains exchange maintained its 2022/2023 production forecasts for both soybean and corn on last week, but cautioned further cuts were possible with yields on the first batches of soy coming in below expectations.

Agricultural markets are likely to seek direction from a U.S. planting report due on Friday.

Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said. COMFUND/CBT

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