CHICAGO: Chicago Board of Trade wheat futures seesawed on Monday but ended the day higher as the conflict in the Middle East and concerns over yield-crushing drought in the US winter wheat belt pushed prices higher.
Forecasts predicted rain will reach the parched US wheat belt, though the showers may come too late for areas where the drought has already done irreversible damage to the winter wheat crop.
Most-active wheat futures struck a nearly two-year peak on a continuous chart last Wednesday as persistent drought and a cold spell maintained fears of yield losses in the US hard red winter wheat crop.
The US Department of Agriculture reported on Monday that 31% of the nation’s winter wheat crop was in good to excellent condition in a weekly report, up from 30% last week but still the lowest for this point in the year since 2023 as the crop struggles with drought and recent freezes.
Oil prices rose 4% on Monday on worries over supply disruptions due to renewed Gulf tensions, including a United Arab Emirates notice that its air-defense systems were responding to a missile threat and a fire on a South Korean vessel.
CBOT July wheat settled 3-1/4 cents higher to $6.41 per bushel.
K.C. July wheat settled unchanged at $6.94-1/2 per bushel.