$7.80 Resistance Hinders Wheat Market Rally

The wheat market has been on a tear lately, but hard red winter (HRW) futures are facing resistance at $7.80.

According to Todd Hubbs, Oklahoma State University Extension crop marketing specialist, grain from the Black Sea region is still entering the global marketplace despite shipping challenges.

Ukraine is rerouting grain supplies through Moldova and Romania via the port of Constanta, while Russia is redirecting shipments through deep-sea ports when accessible.

The price spread between European/Black Sea wheat and HRW wheat out of the U.S. Gulf remains significant, keeping a lid on export demand and extended rallies even with a smaller domestic crop.