Russia's Attack Sends Chicago Wheat Futures Soaring to Three-Year High

Chicago wheat futures surged to a three-and-a-half-year high on Tuesday following reports of Russia's attack on Ukraine's port infrastructure and border crossing in the Black Sea region. The most-traded wheat contract on the Chicago Board of Trade rose by 13-1/2 cents to $7.87-1/4 per bushel, reaching its highest level since February 15, 2023.

The attack, which occurred overnight, damaged a crossing point on the border with Romania and export infrastructure, according to Ukrainian officials. The strike comes despite earlier reports that Turkey was in contact with Russia and Ukraine about grain shipping via the Black Sea, which had temporarily lifted futures prices.

The surge in Chicago wheat futures is also attributed to a poor U.S. crop and spillover strength from wheat, as well as concerns over hot, dry weather damaging the U.S. soybean crop.