Wheat Prices Surge Amid Black Sea Tensions

The wheat market posted gains on Thursday, following increased tensions in the Black Sea region. Chicago SRW contracts rose by 2 ¾ to 7 ½ cents at the close, while KC HRW futures were up 5 1/4 to 8 1/2 cents.

Overnight, a Ukrainian drone strike damaged a Russian grains export terminal in Taman on the Kerch Strait. This incident may have contributed to the market's upward movement.

Export Sales data showed that 285,165 MT of 2026/27 wheat was sold in the week ending July 23, which is a marketing year low and less than half of the same week last year.

The European Commission released production estimates for the EU, showing expected output at 124.4 MMT, a drop of 1.9 MMT from their previous estimate.