Black Sea Conflict Drives Chicago Wheat to Three-Year High

Chicago wheat futures rose to a three-year high on August 27, driven by concerns over the ongoing conflict in the Black Sea region. The market was rattled by reports that Russia may intensify strikes on Ukraine, which could prolong disruptions to grain trade.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) was up 0.7% at $7.53-3/4 a bushel, extending Wednesday's rally when it reached its highest since July 2023.

CM Navigator analysts noted that the market is now pricing not just disrupted shipping, but also the risk that the conflict becomes more prolonged.