Wheat edges higher on Black Sea risks, dry US Plains
BEIJING: Chicago wheat inched higher on Monday as the market focused on risks to Black Sea grain exports after Russia rejected the idea of a ceasefire with Ukraine, while concerns over dry conditions in the southern US Plains also supported prices. The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 0.04% to $6.89-3/4 a bushel by 0405 GMT, extending its rally to a fourth…
Chicago wheat prices rose slightly on Monday as traders focused on risks to Black Sea grain exports following Russia's rejection of a potential ceasefire with Ukraine. The most-traded wheat contract on the Chicago Board of Trade (CBOT) increased by 0.04% to $6.89-3/4 per bushel by 0405 GMT, marking a fourth consecutive day of gains.
The conflict in Ukraine has escalated with Russia launching airstrikes on Ukrainian soil, resulting in casualties. Meanwhile, Kyiv responded with a significant drone attack on Moscow, causing damage and casualties. These developments have fueled concerns among importers about the availability of Black Sea grain, which is seen as crucial for global wheat supply.
Josh Lawrence, an advisory consultant at IKON Commodities, noted that while the USDA reassured in their latest WASDE report that world wheat stocks remain healthy, the actual flows from the Black Sea are what traders are closely monitoring.
US wheat is experiencing its largest weekly gain in one month due to Black Sea disruptions. However, concerns remain regarding dryness in the southern US Plains, where the planting of the 2027 winter wheat crop is expected to commence within a month. Soybeans and corn also saw minor gains, with soybeans easing 0.06% to $11.91-3/4 per bushel and corn rising 0.26% to $4.84-1/2 per bushel.
The US Department of Agriculture recently raised its 2026 US corn and soybean acreage estimates while lowering yield forecasts in a monthly report. Traders are also keeping a close eye on a major field tour scheduled for this week, as it may provide additional insights into US corn and soybean yield prospects.
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