Wheat Futures Pull Back as Black Sea Risks Drive Volatility

Key Moments

Wheat Futures Seen Weaker at the Open

Investing.com — Wheat futures were projected to start Wednesday’s session on the Chicago Board of Trade between 6 and 8 cents per bushel lower when trading resumes at 8:30 a.m. CDT.

The softer open expectation followed a strong rally in Chicago Board of Trade wheat that pushed prices to their highest level since February 2023 before the market eased back.

Black Sea Tensions Disrupt Grain Flows

The recent advance in wheat prices has been fueled by growing concerns over export disruptions from the Black Sea region, as intensified attacks have interfered with Russian and Ukrainian grain shipments.

Ukraine’s agriculture ministry reported that the country’s grain exports in August were down about 58% from the same month a year earlier.

Turkey’s president stated that a mechanism was required to ensure permanent security for commercial maritime traffic in the Black Sea.

Russia’s Policy Moves and Position on Grain Deal

Russia’s foreign minister said he saw no justification to restart the agreement that enabled the secure export of Ukrainian grain through the Black Sea. Russia is described as the world’s largest wheat exporter.

In a separate move, Russia announced that it was suspending export duties on grain until the end of 2026.

Market Levels on CBOT December Wheat

CBOT December soft red winter wheat futures were most recently quoted down 6-3/4 cents at $7.75-3/4 per bushel after establishing contract highs earlier in the session and then retreating.