CHICAGO: Chicago Board of Trade wheat climbed more than 3% on Tuesday, as the market reacted to potential shipping route issues in the Black Sea after Ukraine struck a large Russian warship in Crimea.
Soybeans were a touch lower after South America got rains over the weekend while corn firmed, following gains in oil in early trading. At 1640 GMT, the most-active wheat contract at the Chicago Board of Trade (CBOT) was up 19 cents, or 3.1%, at $6.35-1/4, its highest price since Dec. 8.
Wheat firmed after Ukraine struck a large Russian landing warship in Crimea with cruise missiles in an overnight attack in the Black Sea, a key global shipping route for grains.
The conflict “in Ukraine seems to be escalating a bit,” said Lane Akre, economist with ProFarmer. “So I think (there’s) just a little bit of risk entering the market there.”
Thin trading volume in the commodities markets was expected on Tuesday and throughout the week between the Christmas and New Year’s Day holidays.
The most active soybean contract was down 3/4 cents at $13.05-1/2 a bushel while corn was up 4-1/4 cents at $4.77-1/4 a bushel. Soybeans pointed lower after much-needed rains fell over the weekend in Brazil and Argentina, easing concerns over how drought conditions may threaten crop production.
“Over the next few weeks we’re probably going to see a good mix of rains so it definitely is not favouring the bulls today,” Akre said. Meanwhile, crude oil rallied on Tuesday, supported by Middle East strife and investor optimism that the US Federal Reserve would soon start cutting interest rates, boosting global economic growth and fuel demand.
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