Wheat, corn fall after Black Sea grain export deal extended

Highlights:

• Ukraine Black Sea grain deal extended for at least 60 days
• Market eyes Fed rate decision on Wednesday
• Big Brazilian crop, Argentina rains push down soybeans

Chicago Board of Tradegrain futures fell on Monday after a deal to export grains by sea from Ukraine was extended, allowing the flow of crops to global buyers, analysts said.

Markets also were focusing on the Federal Reserve's interest rate decision on Wednesday. Traders and economists remain split on whether the US central bank will raise its benchmark overnight interest rate on Wednesday, as markets remain on edge in the midst of global banking strains.

"Traders, especially small traders, have run to the sidelines in anticipation of the Fed and its decision and they'll watch to see how outside markets, the bond market, crude oil and the dollar react," said Mike Zuzolo, president of Global Commodities Analytics and Consulting.

The deal allowing a safe Black Sea shipping corridor to export Ukrainian grain was renewed on Saturday for at least 60 days, despite hopes for a 120-day extension, after Russia warned any further extension beyond mid-May would depend on the removal of some Western sanctions.

Russian President Vladimir Putin said that Russia would provide grain to African countries for free if the grain deal is not extended in May.

Chicago Board of Trade most-active wheat Wv1 was down 2.01% to $6.96 a bushel by 10:30am CDT (1530 GMT), while corn Cv1 was down 0.71% to $6.29-3/4 a bushel. Soybeans Sv1were up 0.3% at $14.81 a bushel after dropping earlier to a three-month low.

Soybean traders were focused on ample supplies from a record crop in Brazil coupled with rains expected to pick up in Argentina, Zuzolo added.

Brazil's record soybean crop this season will allow the nation to boost exports to China while also increasing domestic soybean processing.