Wheat Jumps 12.1% in a Week as Black Sea Tensions Push Corn to 3-Year Highs
Updated
Updated · CNBC · Aug 28
Wheat Jumps 12.1% in a Week as Black Sea Tensions Push Corn to 3-Year Highs
3 articles · Updated · CNBC · Aug 28
Summary
Wheat settled at 784 cents a bushel and corn at 536.5 cents on Friday, leaving both contracts at their highest levels in more than three years.
Wheat’s rally was the sharper move: futures rose 12.1% for the week and 54.5% year to date as Russia-Ukraine tensions disrupted Black Sea shipping and damaged expectations for Russian export capacity.
Corn’s advance has been driven more by U.S. crop worries, after the USDA cut yield estimates by 2.3 bushels per acre to 180.7 and Pro Farmer field checks flagged heat, rain and disease damage.
Global tightness is amplifying the corn move, with USDA lifting U.S. export forecasts by 75 million bushels to 3.3 billion as Ukrainian shipments stay constrained and Europe’s drought-hit crop boosts demand.
Weather losses in Europe and the U.S. are also tightening wheat supplies, while the break to multiyear highs is drawing momentum and systematic buying on top of the fundamental squeeze.