Wheat Prices Soar on Fears of Disrupted Black Sea Exports
Chicago Board of Trade wheat futures rose on Monday as fears grew that ongoing fighting between Russia and Ukraine could disrupt Black Sea exports.
The escalation in tensions has already had an impact on global supply chains, with concerns now turning to the potential for further disruptions to shipments from the region.
Corn and soybean futures also turned higher, though prices remained under pressure due to a decline in crude oil prices following reports of a possible deal between the US and Iran.
Market analysts pointed to weather worries as a key factor supporting the wheat market's technical bounce. 'The wheat market found a floor,' said Don Roose, president of Iowa-based US Commodities, 'but we're seeing Europe in a dry drought pattern, the US in a drought, and now with this El Nino shaping up, Australia is going into a drier weather pattern too.'