Chicago wheat futures reach three-and-a-half-year high

Chicago wheat futures hit a three-and-a-half-year peak on Tuesday, following reports that Moscow had dismissed a proposed moratorium on attacks in the Black Sea and launched strikes against port infrastructure in the region. The principal wheat contract on the Chicago Board of Trade surged 13-1/2 cents to $7.87-1/4 per bushel, marking the highest level since February 15, 2023.

Earlier, the contract had touched $7.92-1/4 a bushel, indicating a new high. Ukraine's officials confirmed that Russia had targeted Ukraine's port infrastructure and a border crossing with Romania in the southern Black Sea region of Odessa overnight. Ukrainian President Volodymyr Zelenskiy asserted that the attack was deliberate and caused damage to a border crossing point with Romania and export facilities.

The sudden reversal of earlier losses was attributed to a statement by Turkey regarding its communication with both Russia and Ukraine regarding grain shipping via the Black Sea. Corn prices climbed to a three-year high due to a subpar U.S. crop and a rise in wheat's momentum. Soybeans achieved their highest level in over two-and-a-half years, driven by a biofuels announcement the day prior, ongoing Chinese acquisitions of U.S. soybeans, and apprehensions about adverse, dry weather potentially harming the U.S. soybean crop. This report was AI-assisted and subsequently reviewed by an editor for accuracy.