Wheat Prices Surge as Black Sea Tensions Escalate
The wheat complex led the grain rally on Friday, following more news from the Black Sea region. Chicago SRW contracts rose by 11 3/4 to 22 cents on Friday, with a weekly gain of 35 cents. KC HRW futures were up 15 to 33 cents on Friday, as September contracts saw a 40 ¼ cent increase on the week.
Russia rejected Ukraine's proposal for a ceasefire in the Black Sea region, which has led to limited shipments out of key ports. The CFTC's weekly Commitment of Traders report showed managed money adding back 7,615 contracts to their CBT wheat net short position, increasing it to 31,401 contracts.
Taiwan flour mills purchased a total of 97,200 MT of wheat in an overnight tender from the US. Export Sales data has total wheat sales for 2026/27 at 7.538 MMT, which is 36% of the current export estimate from USDA and lags behind the average sales pace.