Wheat Prices Soar Amid Geopolitical Tensions

The wheat complex has seen significant price increases as tensions in the Black Sea region escalate. All three wheat markets finished the trading day higher. Chicago SRW futures rose between 2 ¾ to 5 cents at the close. Kansas City HRW contracts gained 2 to 3 ½ cents, while Minneapolis spring wheat saw steady trade, ending up as much as 5 ¼ cents.

On Wednesday, Ukraine launched more western-made missiles into Russian territory, specifically British-made missiles, adding to the rising geopolitical concerns.

Weather changes are also influencing prices. Following recent rains, the Southern Plains are expected to experience a drier week ahead, according to NOAA’s 7-day QPF forecast.

In trade news, Export Sales data set to be released on Thursday morning is predicted to reveal total wheat sales between 275,000 and 600,000 metric tons for the week ending November 14.

Internationally, Taiwan has placed a tender for 80,000 metric tons of U.S. wheat, with a submission deadline on Thursday. Meanwhile, Algeria has made an undisclosed purchase of durum wheat in their recent tender.

Dec 24 CBOT Wheat closed at $5.52 1/2, up 2 3/4 cents.

Mar 25 CBOT Wheat closed at $5.72 1/4, up 4 1/2 cents.

Dec 24 KCBT Wheat closed at $5.61 3/4, up 3 1/2 cents.

Mar 25 KCBT Wheat closed at $5.72 3/4, up 3 1/4 cents.

Dec 24 MGEX Wheat closed at $5.90 1/2, up 3 3/4 cents.

Mar 25 MGEX Wheat closed at $6.06 1/4, up 1 cent.

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 here.

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