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Talk of a potential truce in the escalating maritime fighting in the Black Sea allowed wheat futures to set back Thursday, though signs of a breakthrough remain elusive.
Wheat futures surged Wednesday and helped provide support across the grain market after a massive Ukrainian drone attack damaged Russian grain terminals in the Black Sea port of Novorossiysk. The damage is seen delivering a further blow to Russia’s grain exports. Moscow, meanwhile, has targeted ships and Ukrainian grain infrastructure, significantly curtailing the country’s exports as well. The mutual attacks have served to raise worries over global food supplies.
Reuters on Thursday reported that Ukraine had sent Russia an offer suggesting they both halt attacks on civilian targets in the Black Sea.The offer to suspend attacks was transmitted by Kyiv via a third party, and Ukraine was still waiting for a response, the report said, citing a source familiar with the matter.
The report noted that Kyiv was forced to turn to alternative shipment routes when many shipowners halted stops at ports in late July in the southern region of Odesa, a key grain-export hub, after Russia targeted ships in the region. Russia had to suspend operations at all three terminals at Novorossiysk on Wednesday and Thursday after a Ukrainian attack, and will have to cut its grain exports further.
Wheat gave up gains after the report, with September soft red winter wheat ending the day unchanged at $6.52 ¾. September hard red winter wheat fell 1/4 cent to $7.20 1/2, and September spring wheat futures fell 3 3/4 cents to $6.69 ¼. The moves amounted to consolidation on the daily charts after Wednesday’s strong rally.
Market recap: It was a day for consolidation across the grain market. Largely favorable weather forecasts across the Corn Belt provided some pressure.
- December corn fell 8 ¾ cents to $4.72 after solid gains Wednesday following USDA’s August reports. A boost to Brazil’s corn crop from CONAB contributed some pressure.
- November soybeans ended a penny lower at $11.82 ¼, underpinned by solid export data.
- December cotton lost 88 points to 83.50 cents.
- October live cattle fell $3.75 to $220.05, while September feeders dropped $2.15 to $337.20.
- October lean hogs declined $1.425 to $82.125.
U.S. accuses China of ‘transshipment scam’: The Trump administration on Thursday accused Chinese exporters of engaging in a system of “illegal transshipment” via more than 40 third countries to avoid U.S. tariffs. The White House dubbed the practice “The Great Transshipment Scam” in a document that says China has diverted goods through lower-tariff jurisdictions since the U.S.-China trade war began in 2018, the South China Morning Post reported. The White House report said the U.S. will increase the use of artificial intelligence to spot transshipped goods.
Democratic ag leadership shakeup: Results from this week’s Democratic primaries in Minnesota will lead to a changeup in Democratic ag leadership in Congress, Agri-Pulse noted. Sen. Amy Klobuchar, the ranking member on the Senate Agriculture Committee, won her primary bid to become the Democratic-Farmer-Labor nominee for governor. She’ll leave the Senate if she wins in November. Rep. Angie Craig, the top Democrat on the House Agriculture Committee, lost her Senate primary race. Craig will be leaving the House at the end of this term.
A record at the pump: Gasoline prices climbed on Wednesday, marking their highest level on record for this time of year, Yahoo Finance reported. The national average for regular gas stood at $4.03 per gallon, according to AAA data, the report noted, about $0.16 higher than a month ago. The national average “is now at its highest ever level this late in the calendar year,” GasBuddy head of petroleum research Patrick De Haan noted on X, “meaning the national average has never been above $4/gal after Aug. 12 in any previous year- ever.” So far this year, the national average for regular unleaded has spent 103 days, or 46% of its time, at or above $4 per gallon, the report said, the highest count of $4-plus gas since 2022, following Russia’s invasion of Ukraine.