Wheat Prices Rise Despite Technical Trading and Liquidation

Chicago wheat futures posted their first monthly gain in three months on Friday, despite closing lower for the session. The price drop was largely due to technical trading and month-end liquidation, according to Brian Splitt, partner at AgMarket.net. However, concerns over supply disruptions from Russia's attacks on Ukraine's Black Sea ports continued to drive wheat prices upward.

The Ukrainian drones' attack on the Russian port of Taman in the Kerch Strait led to reports that shipowners and insurers may become more reluctant to operate in the region, increasing freight costs and slowing grain movement. As a result, analysts predicted an increase in wheat prices due to these supply chain disruptions.

On Friday, Chicago wheat futures closed at $6.39-1/4 per bushel, down 24-1/4 cents from Thursday's high of $6.86-1/2 per bushel. Corn and other grains also followed the downward trend, with corn prices easing to $4.64 a bushel.