Chicago Wheat Futures Rise Amid Black Sea Export Concerns

Chicago wheat futures extended their winning streak on Tuesday, rising for the fourth consecutive session. The uptick was fueled by heightened concerns over grain export disruptions due to Russia’s ongoing war with Ukraine. Two merchant ships, including one carrying grain, were struck by drones in the Black Sea, raising fears of further delays in Ukrainian exports through Danube river ports and potential risks for shipments from Romania and Bulgaria.

The most-active wheat contract on the Chicago Board of Trade (CBoT) climbed 0.9% to USD6.98-1/4 a bushel, recovering from a six-week low hit last week. A European trader noted that the deteriorating Black Sea situation was a key factor supporting wheat prices. Additionally, a major Saudi purchase indicated that buyers were returning after last month’s price pullback.

Corn and soybeans also saw modest gains, with corn adding 0.7% to USD5.00-1/2 a bushel and soybeans rising 0.5% to USD12.86-3/4 a bushel. The easing of the dollar index from an 18-month high provided some relief, making Chicago grains more affordable for overseas buyers. Traders are also monitoring slower-than-expected US harvest progress, though dry weather forecasts may accelerate field work this week.

Market attention is now turning to Friday’s monthly supply-and-demand outlook from the US Department of Agriculture, which will include updated US corn and soybean harvest projections. Additionally, grain markets are awaiting the end of a week-long holiday break in China to see if buyers there make further purchases of US soybeans.