On Friday, wheat prices increased sharply following the heightened Black Sea tensions, rendering extended gains.
US wheat futures for December delivery advanced by 0.02% to $5.69 per bushel on November 22’s Asian afternoon session.
On top of that, the grain is trading higher across the three markets. More specifically, Chicago Soft Red Winter (SRW) contracts climbed by ¢2.75 to ¢5.00 at the board.
Meanwhile, preliminary open interest decreased by 10,893 contracts, suggesting short covering, with 8,966 of those futures in December.
Moreover, Kansas City Hard Red Winter wheat incurred a ¢2.00 to ¢3.50 to close the session. On the other hand, MPLS Spring contracts recorded a steady growth of ¢5.25 higher.
Based on reports, the conflict along the Black Sea intensified after Ukraine fired additional British-made missiles into Russia.
Nevertheless, the escalation is yet to present further grain trade disruption. However, the rising issue generated a short-covering chance, which pushed prices higher.
Also, the recent data is anticipated to report total wheat sales ranging from 275,000.00 to 600,000.00 metric tons (MT) for the week ending November 14.
Furthermore, Taiwan bought 80,000.00 MT of the commodity. In line with this, an undisclosed amount of durum wheat was purchased by Algeria on Wednesday.
Morocco Boosts Russian Wheat Imports
As severe droughts and global supply chain disruptions ensue, Morocco expands its wheat imports from Russia.
Analysts indicated that the country imported 222,000.00 tons of the grain from Moscow from November 01 to 20. Subsequently, the figure is higher than the 119,000.00 tons during the same period last year.
In connection, the leap signifies the growing reliance of Morocco on Russia as it works on stabilizing its local wheat harvest. It also helps aid its food supply amid the challenging times it currently faces.
More concretely, the declining European exports yielded a sudden shift across Africa. Countries along the continent increasingly turn to the Black Sea region for supply.
