Wheat Soars to Three-Year High Amid Black Sea Tensions
Chicago wheat futures soared to a three-year high on Friday as tensions along the Black Sea intensified, threatening to disrupt grain exports from Russia and Ukraine. The market was also influenced by concerns over U.S. corn yields and strong demand for U.S. soybeans in China.
The Chicago Board of Trade's most traded wheat contract rose 23-1/4 cents to $7.84 a bushel, with prices reaching as high as $7.90-1/4 earlier in the day.
Experts point to Russia's blockade on sea ports as a major contributor to the price surge, with some importers turning to European countries like Romania, France, and Poland for grain supplies.
Farmers in Ukraine are also facing uncertainty due to the conflict, with officials warning that the country's 2027 planting campaign may be in jeopardy if farmers cannot afford to plant crops.
The price of corn and soybeans also reached multi-year highs, with CBOT corn settling at $5.36-12 a bushel up 3 cents and CBOT soybeans reaching $12.88 a bushel after hitting a two-and-a-half year peak.