Wheat Prices Rise as Russia-Ukraine Conflict Hampers Exports
Chicago wheat futures edged higher on Thursday due to ongoing conflict between Russia and Ukraine, two of the world's biggest grain suppliers. The fighting has disrupted exports from the Black Sea region, leading to a surge in attacks on ships, ports, and export terminals.
The most-traded wheat contract on the Chicago Board of Trade (CBOT) rose 0.2% to $6.43-1/2 a bushel at 0645 GMT. Despite dipping from a two-year high above $7 a bushel reached two weeks ago, prices are still up over 25% this year.
Rabobank analyst Vitor Pistoia notes that the key uncertainty lies in how the conflict between Russia and Ukraine evolves. While grain delivery is disrupted, the two countries have harvested a million metric tons more wheat this year than their five-year average.