Wheat rose, but corn and soybeans fell

Chicago cereals were mixed on Monday, reflecting market volatility after global bank shares tumbled and US intervention to guarantee deposits at Silicon Valley Bank, a technology-focused lender.

The most active corn and soybean contracts fell while wheat ones rose, after President Joe Biden tried to allay fears for the banking system, after US regulators intervened with a series of emergency measures following the bankruptcy of Silicon Valley Bank and Signature Bank.

“If you want to know what grain is going to do, keep an eye on the stock market, because that’s really been the pressure in the last day or two,” said Mark Gold of US consultancy Top Third Ag Marketing.

Wheat prices were boosted by the delayed Kansas harvest, Gold added, while corn and soybeans fell on lower crude oil prices.

The most active wheat on the Chicago Stock Exchange rose 2.2% to $6.94 a bushel. Soybeans fell 0.2% to $15.045 a bushel and corn fell 0.1% to $6.1675 a bushel.

Negotiations also began between UN officials and Russia’s deputy foreign minister over the possible continuation of the deal allowing for the safe export of grain from Ukraine’s Black Sea ports, which expires on March 18. Russia is not opposed to extending the Black Sea grain deal, but only for 60 days.