COM - Wheat futures soar to trading limit as Russia-Ukraine fighting escalates
2023-07-19 16:42:19 ET
U.S. wheat futures surged Wednesday as traders worried about reduced grain export shipments due to an escalation of fighting in the Russia-Ukraine war and Russia's exit from the Black Sea grain deal.
Russia launched air attacks on grain terminals and port infrastructure in Odesa for the second night in row, and Russia's Defense Ministry said all ships headed to Ukrainian ports will be considered as potentially carrying military cargo, also saying flag countries of vessels sailing to Ukraine will be considered as on Ukraine's side in the conflict.
Ukraine's Black Sea ports are a vital artery for its grain sales abroad, accounting for the majority of shipments, and the harvest season is now underway.
The most-active Chicago Board of Trade soft red winter wheat contract ( W_1:COM ) briefly hit its daily trading limit before settling +8.5% to $7.27 3/4 per bushel, in its biggest daily gain since February 2022.
BOT corn and soybean futures also were strong, with December corn ( C_1:COM ) +3.5% to $5.53 per bushel, and November soybeans ( S_1:COM ) +1% to $14.08 3/4 per bushel, posting their fifth straight day of gains and hitting their highest level in more than a month.
ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )
Traders said the weather outlook raised the prospect of reduced U.S. harvests of corn and soybeans, keeping concerns about global supplies at the forefront of the market.
More analysis on U.S. crop futures:
- CORN: The Impact Of Ukraine-Russia Conflict, Drought And More
- WEAT: Upgrading To Buy On El Niño Effects
- DBA As Choices In Agricultural ETF Products Decline
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Wheat futures soar to trading limit as Russia-Ukraine fighting escalates