Wheat Prices Fall as Black Sea Tensions Rise
The Chicago SRW wheat contracts have dropped lower on Monday morning, following their rally on Friday. The contracts were up 11 3/4 to 22 cents on Friday, with a weekly gain of 35 cents. Open interest was up 5,732 contracts, indicating new buying.
The KC HRW futures led the wheat rally on Friday, with contracts up 15 to 33 cents. The September contract was 40 ¼ cents higher on the week. MPLS spring wheat closed the session with contracts 9 to 10 ¾ cents higher, but the September contract was 1 ¼ cents lower last week.
The recent rejection of a Ukrainian proposal for a ceasefire in the Black Sea region by Russia has contributed to limited shipments out of key ports. This is particularly concerning given that wheat shipments typically ramp up after harvest for one of the world's key wheat exporting regions.