Wheat futures climb on Black Sea export concerns
Chicago wheat futures extended their winning streak on Tuesday, climbing for the fourth consecutive session. The rise was driven by escalating tensions in the Black Sea, where attacks on vessels have heightened concerns about disruptions to grain exports amid Russia’s ongoing war with Ukraine. Two merchant ships, including one carrying grain, were struck by a drone attack off Bulgaria, following a similar incident near Romania the previous day. These events have raised fears of further delays to Ukrainian grain shipments and potential risks to exports from Romania and Bulgaria.
The wheat market also received support from a significant purchase by Saudi Arabia, indicating that buyers are returning after a recent price pullback. Additionally, a pause in the dollar’s rally provided some relief to Chicago grain prices, which become more expensive for international buyers when the US currency strengthens. The most-active wheat contract on the Chicago Board of Trade (CBoT) rose 0.9 percent to USD6.98-1/4 a bushel, continuing its recovery from a six-week low hit last Thursday.
Corn and soybeans also edged higher, with corn adding 0.7 percent to USD5.00-1/2 a bushel and soybeans rising 0.5 percent to USD12.86-3/4 a bushel. Traders are monitoring slower-than-expected US harvest progress, particularly in Iowa, where rain has hindered field work. However, forecasts predict dry weather across the central US this week, which could accelerate harvest activities. Markets are also awaiting the resumption of trading in China after a week-long holiday to see if buyers there make further purchases of US soybeans.
Attention is also turning to Friday’s monthly supply-and-demand outlook from the US Department of Agriculture (USDA), which will include updated projections for US corn and soybean harvests. Traders are weighing these factors against the backdrop of a worsening Black Sea situation, which continues to underpin wheat prices.