ANKARA: US wheat futures have jumped to the highest in more than a week, as disruptions to shipping in the Black Sea raised the prospect of supply shortages from the crucial grain-growing region.
Turkiye temporarily halted Black Sea transits for its vessels over the weekend amid heightened security risks related to the Russia-Ukraine war.
The country’s foreign minister, Hakan Fidan, called for a “moratorium” on attacks in the region.
That followed an announcement last Friday by Ukraine that its exports of agricultural products in the 2026 to 2027 marketing year could fall by more than half compared with previous estimates, due to Russian attacks.
Ukraine is one of the world’s largest agricultural exporters, providing food for about 400 million people, according to the country’s government.
Most-active wheat futures in Chicago rose as much as 1.8% last Monday to the highest since July 30, boosting the rest of the grains complex. Hard red winter wheat contracts rose even more sharply, with the leading contract gaining as much as 2.4%.
Joe Davis, director of commodities at brokerage Futures International LLC, said the potential supply disruptions boosted US-grown hard red winter varieties more sharply as the grain is seen as a direct competitor with higher-protein milling wheat from the Black Sea and Europe.
“While the disruptions don’t necessarily translate into immediate additional US export business, they do tighten the global exportable supply outlook and balance sheets, forcing importers to diversify origins and keeping support under higher-quality wheat values.” — Bloomberg
