Karl Plume

CHICAGO, (Reuters) – U.S. Wheat futures fell on Friday after reaching their highest point since mid 2008 as investors retreated to equities while traders evaluated the potential disruption in grain supply from Russia’s invasion.

As grain traders liquidated their long positions in advance of the weekend, corn eased from its eight-month peak.

Markets continued to assess the impact of conflicting world-leading exporters on their grain and oileed supply.

Karl Setzer (Agrivisor market analyst) said that there is a significant shift in the money flow before the weekend.

The charts showed us that we had entered overbought territory. We then posted a large correction. Add in uncertainty over how long the disruption to exports will last, and you’ll see this profit-taking as well as weak longs being flushed out.” he stated.

On Friday, Missiles struck the Ukrainian capital Kyiv as Russian forces advanced.

Moscow’s invasion caused Ukraine to close its ports, while Russia stopped commercial shipping in Azov Sea. Importers now have to search for other sources.

Russia and Ukraine are responsible for 29%, 19% and 80% respectively of the global wheat exports.

As supplies are cut off in Ukraine, traders have begun to look for other sources of grain. Traders said that some loadings are being covered by French and Romanian supplies.

Chicago Board of Trade May Soft Red Winter Wheat dropped to $8.59-3/4 per bushel at 11:50 CST (1650 GMT) after it had touched a 13-1/2 year high for most-active contracts. May K.C. The 75-cent limit also applied to hard red winter wheat.

May corn fell 33-1/2 cents, to $6.56-3/4/a bushel. May soybeans lost 66-1/2cents to $15.87-2/4 a bushel.