Wheat Futures Soar to Three-Year High Amid Russia-Ukraine Conflict
Chicago wheat futures have surged to a three-year high as concerns over the Black Sea grain trade continue to rise. The market has been rattled by reports that Russia may intensify strikes on Ukraine, which could prolong disruptions to grain shipments from the region.
The most-traded wheat contract on the Chicago Board of Trade rose 13 cents to $7.61-1/2 per bushel, reaching its highest level since July 2023. Industry players attribute the rally to damaged wheat crops in France and the US Plains due to heat and drought, which set up the market for a rise before recent developments in Russia's war in Ukraine.
Jon Marcus, principal owner of Lakefront Futures, said that while the current situation is dire, importers are already seeking alternative origins. Two vessels are scheduled to call at French ports to load wheat for Egypt, which has sourced over 80% of its imports from Russia and Ukraine so far this year.
Corn and soybeans have also been affected by the developments, with corn down 2 cents at $5.34-1/2 a bushel and soybeans up 1-1/4 cents at $12.67-1/2 a bushel due to decreasing expectations for US corn yields and Chinese demand for soybeans.