Grains-Wheat rallies on escalating Black Sea tensions

Chicago wheat futures shot higher on Friday as news of a Ukrainian attack on a Russian Baltic port and Moscow's rejection of the idea of a Black Sea truce heightened market concerns about a squeeze on exports.

Soybeans and corn gained spillover support from wheat futures and firmer oil prices, though forecasts of rains in the U.S. Midwest limited gains.

The most-active wheat contract on the Chicago Board of Trade settled 22 cents higher at $6.74-3/4 per bushel.

"The war is what's floating the boat — there were thoughts there would be peace talks and then the Russians said no chance for that, so the market is 20 cents higher," said Jack Scoville, vice president of Price Futures Group.

Russia's rejection on Friday of the idea of a ceasefire with Ukraine in the Black Sea rekindled market concerns after a Reuters report on Thursday said Ukraine sent an offer suggesting a halt to attacks on civilian targets in the Black Sea.

Ukraine's military said it struck Russia's Novatek NVTK.MM gas condensate processing complex in the Baltic port of Ust-Luga. While no damage to grain sites was reported, the news raised concerns about risks to Russian grain exports given already severely reduced Black Sea flows.

CBOT soybeans Sv1 ended 10-1/4 cents higher at $11.92-1/2 per bushel, and corn Cv1 rose 11-1/4 cents to $4.83-1/4 per bushel.

Agricultural markets are adjusting to a new supply-and-demand outlook after the U.S. Department of Agriculture raised this week its 2026 U.S. corn and soybean acreage estimates while lowering its yield forecasts in its monthly report.

Traders are also turning their attention to a major field tour next week that will give another indication of yield prospects for U.S. corn and soybeans, with forecasts for rain this week tempering some concerns.