Wheat Prices Flat After Ukraine's Port Strike Raises Export Concerns

Chicago wheat futures were largely unchanged on Thursday after a sharp rise in the previous session following Ukraine's attack on grain terminals at Russia's major Novorossiysk port. The strike has raised concerns about disruption to Black Sea grain exports.

The Rosario grain exchange increased its forecast for Argentina's harvest to record-high levels, leading corn futures to fall. However, prices maintained most of their gains from Wednesday after the US Department of Agriculture (USDA) stated that strong demand would eat into US inventories.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) slipped 0.2% lower at $6.51-1/4 a bushel. Wheat has risen nearly 30% so far this year due to drought damage in US winter wheat and attacks by Ukraine and Russia on each other's export operations.

Analyst Dennis Voznesenski of Commonwealth Bank noted that solid Northern Hemisphere harvests are injecting new grain onto the market, which could weaken global wheat prices if logistical export constraints are resolved.