Chicago Wheat Futures Hit 3.5-Year High on Renewed Black Sea Attacks

Chicago wheat futures climbed to a three-and-a-half-year high on Tuesday, as escalating military actions in the Black Sea region fueled concerns about disruptions to global grain exports.

Price Action

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 13.5 cents to settle at $7.87-1/4 per bushel. During the session, the contract touched a high of $7.92-1/4 per bushel, a price point not seen since early 2023, marking a 3.5-year peak for the commodity.

Geopolitical Drivers

The rally gained momentum following reports that Russia attacked Ukrainian port infrastructure overnight in the southern Odesa region. Ukrainian officials, including President Volodymyr Zelenskyy, confirmed that the strikes deliberately targeted export facilities, including a key border crossing with Romania.

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Prices had briefly eased on statements from Turkey indicating ongoing communication with Russia and Ukraine about grain shipments, but the market quickly reversed course to price in the heightened geopolitical risk.

Broader Commodity Rally

The surge in wheat prices provided upward momentum for other key agricultural commodities. Corn futures rose to a three-year high, supported by both the strength in wheat and concerns over a poor U.S. harvest.

Soybean futures also advanced, reaching a peak of more than two and a half years. The gains in soybeans were attributed to a combination of factors, including a recent biofuel policy announcement, sustained purchases of U.S. supplies by China, and market anxiety over hot, dry weather potentially damaging American crop yields.