Wheat Futures Climb on Black Sea Tensions and Slow US Planting
Wheat futures at the Chicago Board of Trade are poised to open higher on Tuesday, extending a four-day rally. Prices are expected to climb 5 to 7 cents per bushel, driven by growing concerns over export disruptions in the Black Sea region and delays in U.S. planting.
The market's rebound comes after wheat futures approached a seven-week low on October 1. Tensions in the Black Sea have intensified following a drone strike that sank a merchant ship off Bulgaria's coast, with the crew reported missing. This incident has heightened worries about grain shipments already affected by Russia's conflict with Ukraine.
Meanwhile, U.S. wheat plantings are lagging behind schedule. As of Monday, only 36% of plantings were completed, compared to the five-year average of 46%. Analysts had anticipated a completion rate of 43%, highlighting the slow progress.
In recent trading, December soft red winter wheat (CBOT:WZ26) gained 6 cents to $6.98-1/4 per bushel. K.C. December hard red winter wheat rose 7 cents to $7.49-1/4 per bushel, while Minneapolis December spring wheat (MGEX:MWEZ26) climbed 4-1/2 cents to $7.13 per bushel. Trading is set to resume at 8:30 a.m. CDT.