(Businessweek) – Corn extended its biggest drop in a week as Ukraine boosted exports, easing concern that political tensions would curb supply from the third-biggest shipper.
The contract for May delivery lost as much as 0.3 percent to $4.775 a bushel on the Chicago Board of Trade and was at $4.785 by 11:44 a.m. in Singapore. Prices dropped 1.4 percent yesterday, the biggest decline since March 10.
Ukraine loaded close to 700,000 metric tons of corn last week, according to Paris-based farm adviser Agritel. On March 11, Agritel said the nation exported 480,000 tons in the prior week. About 97 percent of voters in Crimea voted March 16 to join Russia in a referendum held amid an heightened Russian military presence on the peninsula.
“Ukrainian corn exports rose to a weekly record for the 2014 marketing year last week, signaling that the recent tensions have not impacted their ability to sell and ship grain,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
European Union foreign ministers agreed to freeze assets and impose visa travel bans on 21 Russians and Crimeans, while the U.S. put similar sanctions on seven Russian government officials and four Ukrainians, including ousted President Viktor Yanukovych. Russia responded by recognizing Crimea as a sovereign state.
A feed mill in China’s southern province of Guangdong bought more than 50,000 tons of corn from Ukraine, according to a purchasing manager at the mill. Shipping isn’t expected to be disrupted, said the manager, who asked not to be identified because the transaction is private.
Wheat for May delivery rose 0.1 percent to $6.7525 a bushel. Soybeans lost 0.2 percent to $13.89 a bushel.
