Wheat Futures Reach Three-Year Highs Amid Black Sea Supply Chain Issues
The Chicago SRW and KC HRW wheat futures have reached three-year highs, with prices surging across the board on Friday.
September contracts for Chicago SRW rose by 10 ½ to 24 ¼ cents, with September trading at 85 ½ cents higher on the week. In Kansas City, HRW futures saw gains of 10 to 24 ¼ cents in the front months, as September was up 71 ½ cents since last Friday.
The rally is attributed to export disruptions and limitations out of the Black Sea, which have added a premium to the market. A recent incident where a merchant vessel caught fire off the Romanian coast has further tightened supplies. Export Sales data shows wheat sales for the current marketing year at 8.342 MMT, down 31% from the same week last year.
The CFTC's weekly Commitment of Traders report revealed that managed money cut back another 12,314 contracts from their CBT wheat net short position in the week of 8/25 to a net short of 14,171 contracts. Nearby Chicago has rallied 82 cents since Tuesday's close.