Grain ship sinks after attack in Sea of Azov

The war in Iran is drawing attention but meanwhile the fighting in Ukraine is also continuing. For the first time since the Russian invasion in 2022, a ship loaded with grain has been sunk. That news has only a limited effect on the wheat market. Rain forecast for the south of the US is making more happen in the market. Winter wheat in the US is not doing great meanwhile, according to the first Crop Progress report from the USDA of this season. The exchange in Paris was closed yesterday because of the long Easter weekend. The CBoT was open and wheat closed in Chicago 3 cent lower at $5.95¼ per bushel. Corn closed in the green with a gain of 1¾ cent to $4.54 per bushel. Soybeans closed 3¼ cent higher at $11.66¾ per bushel. The unrest in the Middle East continues to occupy minds in the grains market. Attempts to bring the US and Iran to a ceasefire are for now going nowhere. In fact, Trump has set a new deadline and now demands that Iran end the blockade of the Strait of Hormuz tonight. If not, America will launch a new wave of attacks. Looking at the oil market, trade does not seem sure whether Trump will follow through on his threat. Grain ship sunk You would almost forget it, but the war between Russia and Ukraine is also continuing. Last Sunday 5 April, a ship carrying grain was allegedly sunk in the Sea of Azov by Ukrainian drones. That is what the Russian state news agency Tass reports in any case, in a report that has been taken over by western news agencies. It would concern a ship with a carrying capacity of around 3,200 tons. According to market bureau SovEcon, this is the first grain-loaded ship to be sunk in the Black Sea/Sea of Azov region since the start of the Russian invasion in 2022. Against the backdrop of the conflict in Iran and the de facto paralysis of diplomacy between Washington, Moscow and Kiev, the risk of further escalation in the region appears to have increased significantly, says Andrey Soziv director of SovEcon at Reuters. Grain hub Meanwhile, Russia is seeking closer ties with Egypt. According to the Russian news agency Interfax, Russian president Putin spoke with Egyptian foreign minister Badr Abdelatty about setting up a grain and energy hub in Egypt during the latter's visit to Moscow. Putin has instructed his government to work out plans for this. The Ukrainian president Zelenski has meanwhile held a phone conversation with Egyptian president Abdel Fattah El-Sisi in which Sisi, according to Zelenski, promised that Egypt will no longer import grain from the Russian-occupied areas, several sources write based on a Telegram message from Zelenski. Egypt would also want to give Ukrainian grain exports a boost according to the Ukrainian president. Rain on the way That wheat on the CBoT still moved down a bit yesterday is, according to some analysts, due to the weather reports for the US. Rain is forecast for the southern prairies next weekend. If all goes well, the precipitation area could extend into western Texas and Kansas, areas that have so far had little rain. The USDA also came out yesterday with the first Crop Progress report of this season. Winter wheat in the main growing areas in the US is in moderate condition compared with last season. 35% of the acreage receives the rating good or excellent against 48% last year this week. 7% of the wheat in the US is in the ear. In California and Texas the crop is furthest along with respectively 45% and 30% in the ear. Sowing of the spring grains has just gotten underway in the US. Of the planned barley area, 5% is in the ground. That is equal to the five-year average. Of spring wheat, 2% has been sown against 3% in the five-year average. With sowing of corn, American farmers are slightly ahead of the five-year average. Of the planned area, 3% has been sown against 2% in the five-year average.