Wheat prices are rising amid Black Sea risks, while corn reached a 2-month high – Bloomberg. Wheat futures in Chicago rose 0.9% as continued attacks by Russia and Ukraine heightened fears about exports from the Black Sea. Russia and Ukraine account for 25-30% of global wheat exports, and crop disruptions support prices.
Wheat has risen for a second consecutive session amid escalating tensions in the Black Sea and worsening crop prospects, Bloomberg reports, according to UNN.
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“The most active futures in Chicago rose 0.9%, as ongoing attacks by Russia and Ukraine heightened concerns about exports from the Black Sea, a key maritime route for two of the world's largest wheat exporters,” the publication writes. In July, wheat rose 16%.
“Ukraine and Russia together account for 25-30% of global wheat exports, and disruptions to the upcoming harvest support world prices,” Dennis Voznesensky, an agricultural economist at Commonwealth Bank of Australia, said Wednesday in a report.
On Tuesday, Russia banned ships from anchoring in the Sea of Azov and ports of the Caucasus in areas lacking organized air defense systems. The Russian Defense Ministry said its forces continue to strike Ukrainian ports, the publication notes.
Supply concerns also increased after SovEcon lowered its forecast for Russia's 2026-2027 wheat harvest by 0.7%, citing weaker prospects in the south and smaller spring wheat acreage.
Russia's wheat exports in July are estimated at about 1.5 million tons, roughly a third less than last year and the lowest for July since 2017, according to a Futures International LLC report published Tuesday, citing logistical constraints.
Prices also received support from poor crop prospects elsewhere: France's soft wheat production is forecast to fall 7.6% this year after heat damaged the crop. US spring wheat rated “good” or “excellent” also fell by five percentage points from the previous week.
Meanwhile, corn prices reached their highest in more than two months, rising to $4.775 per bushel before paring gains, supported by the Black Sea conflict and fears that recent heat in Europe will reduce production.
Source: UNN.
