Wheat Futures Rose After Mine Incident in Ukraine

A field of wheat
Updated Published

Wheat futures rose due to an incident in the Black Sea, where a vessel preparing to load grain from Ukraine struck a mine, increasing fears of escalating turbulence in the region. 

After the incident occurred, Chicago prices have risen as much as 2.13%. Attacks on shipping voyaging the Red Sea have heavily impacted trade in the region, forcing shipping lines to send their fleets that regularly transit the Suez Canal via much longer routes around the Southern tip of Africa. 

Senior market analyst at StoneX Financial Inc, Matt Zeller, said: “Wheat is finding at least a bit of support again this morning on more action in the Black Sea”. 

Meanwhile, the prices of raw sugar have jumped up to 6.4% in New York, the biggest intraday jump since August 10th, 2021, showing promising signs of recovery after a steep decline. Futures previously dropped over 20% since its early November peak, as the drier weather in Brazil has allowed cane harvesting to continue later than normal.

According to a Thursday ADM Investor Services note that said “the market is technically oversold and due for a correction,” the recent rainfall in Brazil’s center-south region could end the season’s harvest soon.