Commodities Update — Grains firm, EU closes borders for some Russian cargo

RIYADH: Chicago wheat, corn and soybean futures firmed on Friday after the US Department of Agriculture assessed global supply and demand, reflecting what Russia’s invasion of Ukraine has had on Black Sea exports.

Soybean and corn futures remained elevated, supported by reduced production in South America and questions of US acreage decisions as planting neared.

The most-active wheat contract on the Chicago Board of Trade, or CBOT, gained 33 cents to $10.58-1/4 per bushel, adding 7.49 percent, its biggest weekly gain since March 4.

CBOT soybeans added 43-1/2 cents to end at $16.89 per bushel, firming 6.7 percent, its biggest weekly addition since July 2, 2021.

CBOT corn firmed 10-1/2 cents to $7.60-3/4 a bushel, ending the week up 4.49 percent, its most significant weekly increase since the week ended March 4.

Palladium rises

Palladium rose 11 percent on Friday on renewed supply concerns after trading in the metal from Russian refineries was suspended in London over Moscow’s invasion of Ukraine.

Palladium, used by automakers in catalytic converters to curb emissions, rose 7.8 percent to hit its highest since March 25 following the announcement by the London Platinum and Palladium Market, a trade association that accredits refineries.

Palladium rose to $2,408.50 en route to its first weekly gain in five. 

Spot gold rose 0.5 percent to $1,941.94 per ounce and was up 0.9 percent for the week, while US gold futures rose 0.4 percent to $1,945.6.

EU closes borders for some Russian cargo vehicles

European Union countries sharing borders with Russia and Belarus have barred some cargo vehicles registered in the two countries from entering since Friday due to sanctions, the Russian customs service said on Saturday.

The EU on Friday formally adopted new sanctions against Russia, including bans on the import of coal, wood, chemicals and other products, while also preventing many Russian vessels and trucks from accessing the bloc.

The Russian customs service said that vehicles used as international transport that have Russian and Belarusian number plates would not be able to move goods on EU territory.

US curbs Russian access to foreign fertilizers and valves

The US on Friday broadened its export curbs against Russia and Belarus, restricting access to imports of items such as fertilizer and pipe valves as it seeks to ratchet up pressure on Moscow and Minsk following the Russian invasion of Ukraine.

(With inputs from Reuters)