Chicago wheat prices edged higher on Friday, heading for a more than 6% weekly increase, as geopolitical tensions in the Black Sea region raised fears of export disruptions. Russia’s launch of a hypersonic missile at a Ukrainian city heightened concerns about stability in the critical breadbasket area.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.09% to $5.70-4/8 per bushel as of 0355 GMT. Corn futures also gained 0.11% to $4.37 a bushel, while soybeans climbed 0.18% to $9.80 a bushel but were on track for a 1.9% weekly decline due to expectations of increased global supplies.
“Wheat supplies from major exporters like Russia and France are significantly tighter than in previous years, while the ongoing conflict between Russia and Ukraine continues to escalate,” noted Bergman Grains Research.
In global developments, the International Grains Council reduced its 2024/25 global wheat production forecast by 2 million metric tons to 796 million tons, partly due to lower projections for the European Union. Meanwhile, the UK’s wheat planting area for 2025 is expected to increase by 5%, though rapeseed sowings could drop by 17%, reaching a 42-year low.
The US Department of Agriculture confirmed sales of 198,000 tons of US soybeans to China and an additional 135,000 tons to unknown buyers, all scheduled for delivery in the 2024/25 marketing year. In Argentina, soybean planting reached 35.8% of the 18.6 million hectares planned for the season, advancing by 16 percentage points over the past week.
China further expanded its agricultural trade with Brazil, approving imports of sorghum, fresh grapes, sesame, and fish products. Meanwhile, commodity funds were net sellers of CBOT wheat, corn, soybean, soymeal, and soyoil contracts, traders reported.
4o
