Wheat Prices Soar on Black Sea Disruptions

Chicago wheat prices rose over 1% on Wednesday as concerns about Black Sea grain exports escalated due to ongoing attacks by Russia and Ukraine. The disruptions have effectively halted Ukrainian sea-borne exports and reduced Russian flows from the Sea of Azov shipped via the Kerch Strait, according to Carlos Mera, head of agricultural commodities research at Rabobank.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.1% at $6.70 a bushel as of 0222 GMT. Soybeans lost 0.3% to $12.16-1/2 a bushel and corn gained 0.2% at $4.81-1/4 a bushel.

Investors are watching reports that Ukraine is discussing possible mechanisms to keep vessels moving through its major export ports, despite the country's denial. Meanwhile, the US Department of Agriculture reported on Monday that 63% of the country's corn crop was rated 'good-to-excellent' condition as of Sunday, down from 67% a week earlier.