Black Sea Tensions Boost Chicago Wheat Futures

Chicago wheat futures rose on Monday due to concerns over supply disruptions caused by Russian and Ukrainian attacks on each other's export operations in the Black Sea. Prices are up nearly 30% this year, but remain below highs of over $7 a bushel seen last month when export disruptions began.

Rod Baker, an analyst at Bendigo Bank Agribusiness, said that despite the disruptions, grain is still being exported from the region, albeit with increased risk. He predicted prices would stay above $6 a bushel and likely closer to $6.50 over the near term due to lower production in major exporting nations.

A weakening US dollar also supported Chicago prices, making US exports more competitive. The market awaits a monthly report from the US Department of Agriculture on Tuesday with updated yields, acreage, and production forecasts that could move prices further.