Wheat Prices Surge Amid Black Sea Conflict
Wheat prices are rallying on Thursday after recent strikes in the Black Sea region. Overnight, a Ukrainian drone strike hit a Russian grains export terminal in Taman on the Kerch Strait.
An analysis by Reuters shows that market expectations for wheat exports in the week of July 23 range from 200,000 to 500,000 metric tons (MT). The ongoing conflict between Ukraine and Russia continues to limit Black Sea traffic, with strikes affecting port and internal logistics infrastructure.
On Wednesday, wheat contracts posted mostly lower trade, but spring wheat contracts held higher. Chicago SRW contracts lost 1 1/2 to 3 1/2 cents, while KC HRW futures were down 3/4 to 3 3/4 cents lower. However, MPLS spring wheat was steady to 4 cents higher at the close.
Looking at prices, Sep 26 CBOT Wheat closed at $6.60 3/4, down 1 3/4 cents, but is currently up 18 3/4 cents. Dec 26 CBOT Wheat closed at $6.77 3/4, down 2 cents, and is also up 18 3/4 cents.