Wheat Market Bounces Back Amid Ongoing Black Sea Conflict
The wheat market is experiencing a strong recovery on Friday, following a decline in European futures overnight. The complex had slipped into losses by Thursday's close, with Chicago SRW contracts trading 2 ¼ cents lower. However, open interest increased by 10,313 contracts on the same day.
Ukraine has proposed a truce with Russia to stop attacking civilian targets on the Black Sea, but Russia has reportedly rejected the offer. This ongoing conflict is affecting wheat prices and exports from the region.
The weekly Export Sales data showed net sales of 255,931 MT, which was in line with trade ideas for between 200,000 and 500,000 MT in 2026/27 sales. Mexico was the top buyer, purchasing 101,100 MT, followed by South Korea at 87,700 MT.
Taiwan flour mills also acquired a total of 97,200 MT of wheat from the US in a tender overnight. As of Friday's market open, September CBOT Wheat had closed at $6.52 3/4 and was currently up 11 1/4 cents, while December CBOT Wheat was trading up 11 1/4 cents.