Wheat fluctuates as traders weigh Black Sea risks, US exports

Synopsis

Wheat prices fluctuated after reaching a two-year high on Black Sea supply risks. Traders weighed these concerns against weak United States export data released recently. Russia and Ukraine's grain export corridor attacks threaten global food supplies significantly.

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(Bloomberg) --Wheat fluctuated after hitting a two-year high in the previous session as traders weighed Black Sea supply risks against weak US export data.
Most-active futures in Chicago dipped as much as 1.2% before paring those losses. On Thursday, prices had climbed to the highest since May 2024 before ending the session lower after the US Department of Agriculture reported weekly export sales of just 235,000 tons, the lowest level since May.

Russia-Ukraine tensions continued to underpin the market. “The situation on the Black Sea basin remains extremely sensitive. However, the absence of new elements and prices approaching resistance levels of $7 a bushel in wheat has led to profit-taking,” Argus analysts wrote in a note.

Bloomberg

Intensified attacks by Russia and Ukraine on each other’s grain export corridors over the past week have threatened to disrupt global food supplies at a time when agricultural markets are already grappling with weather risks and trade uncertainty.

Russia is the world’s largest wheat exporter, and together with Ukraine the two countries rank among the world’s leading grain suppliers. The Black Sea acts as the crucial artery connecting their crops with global markets.

Prices:

Wheat was steady at $6.74 a bushel as of 11:45 a.m. London

Corn was down 0.4% at $4.6225 a bushel

Soybeans were steady at $11.9325 a bushel