CHICAGO: Chicago wheat futures rose on Friday to another three-year peak as the market remained focused on military escalation in the Black Sea, which is threatening a prolonged squeeze on Russian and Ukrainian exports.
Corn and soybeans set fresh multiyear and life-of-contract highs, further supported by doubts over US corn yields and a wave of Chinese demand for US soybeans. The most-traded wheat contract on the Chicago Board of Trade was up 25-1/2 cents at USD7.86-1/4 a bushel at 10:20 a.m. CDT (1520 GMT). It rose earlier to USD7.88 per bushel, its highest level since February 2023 and above previous three-year highs hit this week.
A report this week that Russia was considering stepping up missile strikes on Ukraine dimmed hopes of a swift recovery in Black Sea shipments after tit-for-tat attacks in recent weeks brought grain loadings at Russian and Ukrainian ports to a virtual halt.
“Overall, Russia doesn’t seem inclined to pull back and allow any type of exports,” said Jack Scoville, vice president of Price Futures Group. News that a commercial vessel sank off the coast of Romania in the Black Sea on Thursday evening, likely after being hit, kept attention on war risks to shipping in the zone, traders said.
In Ukraine, the 2027 planting campaign is at risk because farmers may lack the funds to sow crops after Russia’s blockade of sea ports sharply curtailed exports, officials said on Thursday.
In Russia, meanwhile, farmers and market analysts expressed skepticism on Thursday about measures to maintain grain exports, with some calling for a cut to the winter sowing area in order to avoid a collapse in domestic prices.
Traders are monitoring a shift in demand away from Russia and Ukraine, with some importers turning to European Union countries like Romania, France and Poland. CBOT corn rose 3-3/4 cents to USD5.37-1/4 a bushel after setting a new three-year peak. CBOT soybeans gained 16-1/4 cents to USD12.84-1/2 a bushel, after reaching another 2-1/2-year peak.
A major Midwest field tour last week found subpar crops due to adverse summer weather, estimating that US 2026 corn production would fall well below government forecasts. Soybean prices have been boosted by Chinese demand for American beans. China’s Sinograin, a state stockpiler, completed its fifth soybean auction in less than a month on Wednesday, aimed at freeing up storage capacity for incoming US cargoes.
The corn and soybean markets also drew support from a Reuters report that the US administration plans to shield farming from waivers to biofuel laws. Corn and soyoil are widely used to produce biofuel.