CANBERRA: Chicago wheat rose on Thursday for a fifth consecutive session as Ukraine’s long-range missile attacks on Russia raised the threat of the escalating conflict likely disrupting grain exports.
Soybean futures regained some ground 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 inched lower.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.2% at $5.73-1/2 a bushel by 0647 GMT. Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday. Traders fear an intensification of attacks on both sides ahead of U.S President-elect Donald Trump’s inauguration and possible peace talks that could follow, StoneX analyst Arlan Suderman wrote in a note. “The market is building risk premium on the possibility that ships might become unwilling to move through the Black Sea,” he said.
CBOT wheat remains near four-year lows due to huge Russian exports and improvements in growing conditions in regions including the United States, the Black Sea region and Europe.
However, 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. “The general supply and demand picture is tightening,” said Ole Houe at IKON Commodities in Sydney. “Prices should be higher in a few months.” In other crops, CBOT soybeans were up 0.3% at $9.93-3/4 a bushel and corn was down 0.1% at $4.29-3/4 a bushel.
Chinese 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, and the US Department of Agriculture on Wednesday confirmed more private sales.
However, with a huge US harvest just wrapping up, the prospect of record production in Brazil early next year is maintaining pressure on prices, and a rally in CBOT soyoil futures appears to have fizzled amid expectations that the Trump administration will lessen government support for biofuels
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