CBOT wheat hits new three-year high on escalating war

CHICAGO, Aug. 28 (Reuters) - Chicago Board of Trade 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.

• Most-active wheat Wv1 earlier rose to $7.90-1/4 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.
• 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.
• Authorities in Russia's Rostov region declared a state of emergency on Friday, saying port closures and disruptions to navigation in the Azov-Black Sea basin had led to a significant accumulation of agricultural products at farms.

• CBOT December soft red winter wheat WZ26 futures finished 23-1/4 cents higher to $7.84 per bushel.