CBOT wheat gains on fears of more Black Sea disruption
WEAT•Chicago wheat futures rise on Black Sea disruption fears
Chicago Board of Trade wheat futures rose on Monday, reversing earlier weakness on fears that intensified fighting between Russia and Ukraine would further disrupt Black Sea exports, market analysts said.
- CBOT September soft red winter wheat WU26 ended up 11-3/4 cents at $6.51 per bushel.
- K.C. September hard red winter wheat KWU26 settled up 9-3/4 cents at $7.17-1/4 a bushel and Minneapolis September spring wheat MWEU26 gained 5-1/4 cents at $6.95 a bushel.
- Drought issues are also raising concerns among wheat traders, who are focusing on dry conditions in Europe and the U.S., and a drier weather pattern shaping up in Australia, said Don Roose, president of Iowa-based U.S. Commodities.
- Corn futures also ended higher on support from spillover strength in wheat futures, market analysts said.
Traders watch attacks on Black Sea shipping and export routes
Wheat traders were focusing on prospects of continued drone and missile attacks on ships and ports in Ukraine and Russia, which have already interrupted Ukraine's wheat exports with Russian wheat exports also falling, market analysts said.
Russia said on Monday it was increasing protection of ships in the Azov-Black Sea basin, while also developing alternative cargo routes, in a move that follows a sharp escalation of attacks at sea by both sides in the war in Ukraine.
Algeria's state grains agency OAIC has issued an international tender to buy soft milling wheat to be sourced from optional origins, European traders said on Monday.
