CANBERRA: Chicago wheat rose on Thursday for a fifth consecutive session as Ukrainian long-range missile attacks on Russia raised the threat that escalating conflict could disrupt grain exports.
Soybean futures were flat after two days of losses fuelled by uncertainty about demand for soy-based biodiesel and expectations that top exporter Brazil could produce a record crop.
Corn futures lacked momentum.
Fundamentals
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The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.4% at $5.74-1/4 a bushel, as of 0126 GMT, with CBOT soybeans and corn flat at $9.90-1/4 a bushel and $4.30-1/4 a bushel, respectively.
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Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets a day after it fired US ATACMS missiles.
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Traders fear Russia and Ukraine will intensify attacks to improve their bargaining positions ahead of U.S President-elect Donald Trump’s inauguration in January and possible peace talks that could follow, StoneX analyst Arlan Suderman wrote in a note.
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“The market is building risk premium on the possibility that ships might become unwilling to move through the Black Sea,” he said.
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CBOT wheat still remains near four-year lows due to huge Russian exports and improvements in growing conditions in regions including the United States, Black Sea and Europe.
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That said, exports from Russia are expected to slow sharply and Russian farmers say they are sowing less wheat for the 2025 harvest after heavy losses this year.
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In other crops, Chinese trade data showed its soybean imports from the United States more than doubled year-on-year in October as buyers fearful of Donald Trump’s trade policies accelerated shipments.
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The US Department of Agriculture on Wednesday confirmed private sales of 202,000 metric tons of US soybeans to China and another 226,200 tons to undisclosed destinations.
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However, with a huge US harvest just wrapping up, the prospect of record production in Brazil early next year is maintaining pressure on prices.
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CBOT soyoil futures also slipped further amid worries about demand for US biodiesel and declines in Malaysian palm oil futures.
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