Wheat Futures Rise Amid Growing Tensions in the Black Sea

The wheat market is experiencing a significant upturn this Monday morning, as increasing tensions in the Black Sea prompt traders to adopt a more optimistic stance. Chicago SRW futures are climbing by 12 to 13 cents, while KC HRW contracts see gains of 13 to 14 1/4 cents. MPLS spring wheat is also up, with increases ranging from 12 to 14 cents.

Weekend developments, including President Biden’s approval for Ukraine to use U.S. long-range missiles against targets in Russia, have impacted the market. Although the wheat market has largely remained stable during the nearly three-year-old conflict, this news offers some support for short covering among traders.

This morning’s Export Inspections report revealed that a total of 196,281 MT (7.2 million bushels) of wheat were shipped during the week ending November 14. This figure marks a decline of 44.44% from the previous week and is down 48.08% compared to the same week last year. Mexico led as the primary destination, receiving 63,669 MT, followed by Taiwan with 57,744 MT and South Korea with 43,713 MT. Overall, marketing year shipments have reached 10.325 MMT (379.37 million bushels) to date, reflecting a 31.37% increase over the same period last year.

Analyzing the Commitment of Traders data, it became clear that speculators in CBT wheat have increased their net short position, adding 14,526 contracts for a total of 45,307 contracts as of last Tuesday. In the KC wheat market, managed money expanded their net short position by 11,018 contracts, bringing the total to 25,098 contracts.

Dec 24 CBOT Wheat is trading at $5.48 3/4, which is an increase of 12 1/4 cents.

Mar 25 CBOT Wheat stands at $5.67, reflecting a rise of 13 cents.

Dec 24 KCBT Wheat is priced at $5.54 1/4, up 14 1/4 cents.

Mar 25 KCBT Wheat is currently at $5.65 1/4, also showing a 13-cent increase.

Dec 24 MGEX Wheat is at $5.86, up 13 3/4 cents.

Mar 25 MGEX Wheat is priced at $6.04, marking an increase of 12 3/4 cents.

On the date of publication,

Austin Schroeder

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.