SOYB - Wheat jumps again as Ukraine strikes on Russian vessels threaten Black Sea exports
2023-08-07 18:30:25 ET
U.S. wheat futures extended gains Monday after Ukraine used drones to cripple a Russian naval vessel and an oil tanker over the weekend, and Russia retaliated with attacks on Ukraine's port infrastructure including grain storage units, sparking fresh concerns about wheat exports from the region.
Wheat ( W_1:COM ) for September delivery settled +3.8% to $6.57 1/4 per bushel on the Chicago Board of Trade, while December corn ( C_1:COM ) ended +0.2% to $4.98 per bushel and November soybeans ( S_1:COM ) finished +2.2% to $13.03 3/4 per bushel.
ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )
"The risk in the Black Sea is increasing by the day and any threat to Russian exports is much more potent than a threat to the Ukrainian export corridor," said Ole Houe, CEO at broker IKON Commodities.
Yet commercial ships continued to pass through the Kerch strait after the weekend attack, Bloomberg reported.
Chicago wheat futures remain more than 15% lower than a year ago amid harvest time in the Northern Hemisphere.
Weekend rainfall in U.S. crop-growing areas is expected to continue throughout this week, helping limit gains for grain futures, particularly CBOT soybean futures thanks to the overwhelming long position fund traders have on soybeans.
On Friday, the CFTC reported in its Commitment of Traders report that through August 1, managed money held a long position just under 100K contracts in soybeans, giving funds plenty of room to liquidate positions.
More analysis on grain futures:
- New From Russia Could Be Very Bullish For The WEAT ETF Product
- CORN ETF: The Impact Of The Russia-Ukraine Conflict, Drought And More
- DBA As Choice In Agricultural ETF Products Decline
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Wheat jumps again as Ukraine strikes on Russian vessels threaten Black Sea exports