CHICAGO: US wheat futures rose on Thursday, with benchmark Chicago Board of Trade wheat shaking off early weakness, as traders continue to wrestle with supply disruptions from Russia’s invasion of Ukraine.
Markets are closely watching the talks to end the war in Ukraine, which Russia calls “a special military operation”, but the Kremlin said there was no deal yet.
Wheat prices have been extremely volatile during the three weeks since the Feb. 24 invasion, as the market is heavily reliant on exports from both countries through the Black Sea.
France’s Strategie Grains said the war could remove from the world market in 2021/22 about 11 million tonnes of Black Sea wheat exports and some 12 million tonnes of corn exports.
As of 1:04 p.m. CDT (1804 GMT), CBOT May wheat was up 33-3/4 cents at $11.03 per bushel. May corn gained 26 cents at $7.56 a bushel and May soybeans were up 17 cents at $16.66-1/4 a bushel.
CBOT wheat bounced back after a 7% drop on Wednesday. The most-active contract has retreated from record highs set last week above $13 a bushel, but remains elevated as the conflict in Ukraine continues.
“At the end of the day, we have this uncertainty about what the longer-term supply outlook is going to be. As long as you have that, it is hard for the markets to fully capitulate,” said Terry Linn, analyst with Linn & Associates in Chicago.
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