Chicago wheat futures on Monday surged to their highest since June amid growing concerns that an escalation in the fighting between Russia and Ukraine could further disrupt grain shipments from Black Sea ports, Reuters reports.
The rally in wheat also gave a boost to corn futures, which also rose on expectations of reduced harvest forecasts in the U.S. and Europe.
According to Barchart, the rally is being driven by widespread Russian missile attacks in Ukraine casting doubt that the U.S. export deal from southern Ukraine ports will be renewed in November.
USDA's WASDE arrives Wednesday
While soybean futures firmed in mid-session trading, as traders jockeyed to adjust their positions ahead of USDA's monthly World Agricultural Supply and Demand Estimates and Crop Production reports on Wednesday.
According to reports, traders say the markets are worried that USDA may raise soybean yield or acres in the report, as they have in past years. And uncertainty about demand from China, the world’s largest buyer of soybeans, also kept the gains in check, traders said.
Tuesday's trading
Barchart reports overnight wheat trade pushed the wheat rally back by double digits at the lows, though futures across all markets were currently 7 to 15 cents in the red.
Corn futures held most of their gains through the afternoon, but the fading was just enough to push December back below the $7/bushel mark.
