Chicago Wheat Climbs on Black Sea Disruptions and Saudi Purchase

Chicago wheat prices rose on Monday, rebounding from six-week lows after disruptions in Black Sea shipments and a large Saudi purchase boosted demand. The lack of progress in restoring grain exports through the Black Sea, due to the ongoing Russia-Ukraine war, kept prices elevated. Saudi Arabia’s purchase of over half a million tons of wheat further tightened global supplies, especially with Black Sea exports at a standstill.

Traders noted that while there were hopes of resuming Black Sea exports, no tangible progress had been made. Chicago Board of Trade (CBOT) most-active wheat futures climbed 1.7% to USD6.94-3/4 a bushel by 1109 GMT. Corn and soybeans also saw gains, rising 0.5% and 0.7% respectively, though their prices faced pressure from forecasts of dry weather in the US, which could aid harvests.

The market remains uncertain about the size of this autumn’s US corn and soybean harvests, with traders awaiting the US Department of Agriculture’s crop production and supply-demand estimates report on October 9. Commodity brokerage StoneX recently lowered its estimate of the average US 2026 corn yield to 182.1 bushels per acre, down from 182.9 bushels in its previous report.

Strong US exports, particularly soybeans to China, provided additional support to prices. However, the overall sentiment remained mixed, with traders weighing the impact of geopolitical disruptions against favorable weather conditions for US crops.