On Thursday, wheat prices increased amid Russia’s weather concerns, which affected its supply-lifting futures and outlook over possible shipment limitations.
In the Asian afternoon session, wheat futures for December shipments bolstered by 1.19% to $6.06 per bushel.
According to reports, the grain sales totaled 433,560 million tons (MT) ended on October 3, almost half of the 250,000 to 550,000 MT forecast. However, the data slightly declined from the week before and below the same week in 2023.
Sources also revealed that Mexico was the top buyer of 101,400 MT, followed by the Philippines, which purchased 60,000 MT.
Meanwhile, analysts noted that worries over Russia’s dry weather conditions and potential export restrictions have supported the US wheat market.
Also, recent Russian attacks on grain vessels in the Black Sea have sparked concerns over the war limiting supplies.
Conversely, exporting countries like Argentina and Australia have lost millions of tons of wheat due to drought and frost. More so, the slack of soil moisture is battering 2025 crops in Russia, Ukraine, and the US.
Furthermore, data disclosed that world wheat inventories have declined from record highs half a decade ago as poor weather battered production and Moscow’s 2022 invasion of Ukraine temporarily boosted grain costs.
Black Sea Risks Export Pushes Wheat Prices
According to reports, wheat futures have surged over 2.50% this week amid risks to Black Sea shipments, adding to worries about the weather in key producers.
Ukrainian officials revealed that Russia had struck three ships with missiles in four days.
Furthermore, the Wednesday strike slaughtered at least eight people and ruined a container ship with humanitarian cargo legislated by the United Nations for Palestine.
Sources noted that Russia also attacked two ships loaded with grains last Sunday and Monday.
Meanwhile, the US Department of Agriculture forecasts that world wheat will end stocks at a nine-year low of 257.22 million metric tons in 2024/25 as the projection for global yield extends to a record of 796.88 million.