Wheat Prices Volatile Amid Ongoing Tensions and Supply Estimates

The US wheat market has been volatile in recent days, making double-digit gains on Friday. The uncertainty is partly due to Russia's continued attacks on foreign vessels in the Black Sea.

According to Ben Breish, a broker with Allendale Inc., wheat prices remain uncertain and are likely to continue trading higher. This comes as the US Department of Agriculture prepares to release its August supply/demand estimates on Aug. 12.

The estimates project wheat production at 1.525 billion bushels, down 11 million from July's estimate. Winter wheat production is expected to decline by nine million bushels at 981 million, while spring wheat production would be down seven million bushels at 468 million.