Wheat prices in Chicago have surged amid new risks to exports from the Black Sea

Chicago wheat futures rose sharply on Friday amid growing concerns over grain exports from the Black Sea region. The most-active CBOT wheat contract gained 22.25 cents to $6.755 per bushel, or around $248/t.

Prices were supported by Russia’s rejection of the idea of a ceasefire in the Black Sea. Moscow said it saw no grounds for halting hostilities in the area, while Ukraine had earlier proposed through a third party a mutual halt to attacks on civilian targets.

The market is increasingly concerned about further disruptions to grain supplies from the region. An attack on Novorossiysk this week already forced the suspension of operations at the Russian port’s main grain terminals, adding to concerns over the stability of Black Sea exports.

Corn and soybeans also followed wheat higher. Chicago corn futures gained 8.5 cents to $4.805 per bushel, while soybeans rose 4.25 cents to $11.865 per bushel. Higher crude oil prices provided additional support to the markets.

Further movements in grain prices will largely depend on developments in the Black Sea. Intensifying attacks on port infrastructure and shipping have already disrupted exports from the region and brought a geopolitical risk premium back into grain prices.

Tags: Ukraine, prices, Black Sea region, wheat, Chicago