Chicago agricultural commodities closed lower Thursday, as investors shrugged off the possibility that the renewed conflict between Russia and the West would disrupt exports from the Black Sea region.
The most active corn contract for December delivery fell 3 cents, or 0.80 percent, to 3.7125 U.S. dollars per bushel. Soybeans for November delivery dropped 2 cents, or 0.19 percent, to 10.78 dollars per bushel. Wheat for September delivery shed 6.5 cents, or 1.14 percent, to 5.615 dollars per bushel.
Russian Prime Minister Dmitry Medvedev said Thursday that Russia is imposing a ban on food imports from the European Union and the United States in retaliation for their sanctions against Moscow over its role in the Ukraine crisis.
Corn, wheat, and soybeans dropped across the board on Thursday as traders, digesting Russia's anti-sanction move, dismissed the possibility that the West would impose sanction on Black Sea grain imports to countries that need food, such as Egypt and many in the North Africa.
The U.S. export sales through the week ending July 31 were in line with market expectations, with wheat export sales standing at 21.7 million bushels, soybeans at 40.6 million bushels and corn at 34.7 million bushels.
With the crop-friendly weather forecast unchanged, a bumper harvest is widely expected, unless dryness or freezing weather hits the Southern Hemisphere in September.