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.
The most-traded wheat contract Wv1 on the Chicago Board of Trade finished 23-1/4 cents higher at $7.84 per bushel. It rose earlier 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.
"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 late on Thursday, likely after being hit, kept attention on war risks to shipping in the area, 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.
Corn and soybeans also hit multi-year highs
Corn and soybeans set fresh multi-year and life-of-contract highs, further supported by doubts over U.S. corn yields and a wave of Chinese demand for U.S. soybeans.
CBOT corn Cv1 settled 3 cents higher at $5.36-1/2 a bushel after setting a new three-year high. CBOT soybeans Sv1 settled 20 cents higher at $12.88 per bushel, after reaching another 2-1/2-year peak.
A major U.S. Midwest field tour last week found sub-par crops due to adverse summer weather and estimated that U.S. 2026 corn production would fall well below government forecasts.
Soybean prices have been boosted by Chinese demand for U.S. 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 U.S. cargoes.
The corn and soybean markets also drew support from a Reuters report that the U.S. administration plans to shield the farm sector from an expected expansion of waivers of biofuel laws. Corn and soyoil are widely used to produce biofuel.
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