Chicago Wheat Futures Drift Lower Amid Black Sea Supply Concerns

Chicago wheat futures dropped on Friday due to technical trading, but were still poised for their first monthly gain in three months. The decline was attributed to mounting concerns over Black Sea supplies, particularly after attacks by Russia and Ukraine. Shipowners, insurers, and exporters may be less inclined to operate in the region, leading to higher freight costs and slower grain movement.

Analysts noted that the end of the month is also causing liquidation, which contributed to the price drop. The Chicago Board of Trade saw wheat futures fall 26-3/4 cents to $6.36-3/4 a bushel by 11:51 a.m. CDT (1651 GMT) after reaching a high of $6.86-1/2 a bushel in the previous session.

The corn contract on the Chicago Board of Trade eased 6-1/2 cents to $4.62 a bushel and was on track for a monthly gain, snapping two consecutive monthly losses. In contrast, the most-active soybean contract was down 6 cents at $11.82-3/4 a bushel, falling for a third straight session due to rain forecasts in the US Midwest near the end of the week.

Market players are looking forward to August's US Department of Agriculture supply and demand report, which will provide updates on new crop yields. The European Commission also cut its forecast for usable production of most grain and oilseeds in the European Union in 2026/27, including an 8% output drop for soft wheat and a 14% production drop for grain maize compared to 2025/26.