Wheat Prices Surge Amid Black Sea Tensions and Export Disruptions
On Thursday, July 30th, the wheat complex saw gains across three exchanges following increased Black Sea tensions. Chicago SRW contracts rose 2 ¾ to 7 ½ cents higher at the close, while KC HRW futures were up 5 1/4 to 8 1/2 cents. MPLS spring wheat also increased by 6 ½ to 7 1/2 cents.
These gains came after a Ukrainian drone strike on a Russian grains export terminal in Taman on the Kerch Strait, causing significant damage. Meanwhile, export sales data revealed that 285,165 MT of 2026/27 MT wheat were sold in the week of July 23rd, which was less than half of the same week last year.
Indonesia purchased 70,000 MT, with 60,000 MT going to the Philippines. The European Commission's data showed expected EU production at 124.4 MMT, a drop of 1.9 MMT from their previous estimate. Exports are seen at 29 MMT, down 1 MMT, with ending stocks estimated at 12.9 MMT, a 0.9 MMT decrease from last month.