Wheat Prices Soar to Three-Year High on Black Sea Conflict Fears
Chicago wheat futures reached a three-year high on Thursday, driven by concerns over the prolonged disruption to Black Sea grain trade due to Russia's potential increase in ballistic-missile strikes against Ukraine. The Chicago Board of Trade's most traded wheat contract finished 12 1/2 cents higher at $7.60-3/4 a bushel.
The benchmark index rose to $7.67-1/2 on Wednesday, the highest level since July 2023, according to Bloomberg News. The damage caused by heat and drought to wheat crops in France and the U.S. Plains set the stage for a market rally before the latest developments of Russia's war against Ukraine.
Jon Marcus, principal owner of Lakefront Futures, stated, 'This match lit the fire but it had been smoldering a long time.' The two vessels scheduled to arrive in France to load wheat bound for Egypt indicate importers looking for other origins at a time when Russian and Ukrainian exports are usually at their peak.