Wheat extends gains as ship attacks heighten Black Sea export worries
DBA•Chicago wheat futures rose for a fourth straight session, up 0.9% to $6.98¼ a bushel, as ship attacks heightened concerns about Black Sea grain exports. Corn and soybeans also gained.
1. Black Sea export concerns
Chicago wheat futures rose for a fourth straight session on Tuesday, recovering from a six-week low reached last Thursday. Two merchant ships, including one carrying grain, were hit in a drone strike off Bulgaria, following an attack on a vessel outside Romania’s territorial waters on Monday.
2. Other market factors
Traders said the attacks could affect Ukrainian exports through Danube ports and create risks for shipments from Romania and Bulgaria. Wheat also drew support from a major Saudi purchase and a pause in the dollar’s rally. Corn rose 0.7% to $5.00½ a bushel and soybeans gained 0.5% to $12.86¾.
3. Harvest and upcoming data
US farmers had harvested 23% of corn and 25% of soybeans, below analyst expectations and the five-year average pace, USDA data showed. Traders were weighing rain-delayed fieldwork against forecasts for dry weather and awaiting Friday’s USDA supply-and-demand outlook.
