Wheat Futures Jump 5% Over Russia-Ukraine Conflict

Wheat Futures Jump 5% Over Russia-Ukraine Conflict

On Wednesday, wheat futures traded on the Chicago Board of Trade (CBOT) surged approximately 5% as military actions between Russia and Ukraine disrupted Black Sea shipping routes and grain exports. Ukrainian drone attacks forced Russia, the world’s top grain exporter, to restrict shipping in the Sea of Azov, a corridor that handles roughly a quarter of its grain exports.

The CBOT September soft red winter wheat contract settled up 32½ cents at $6.77‑½ per bushel after briefly reaching $6.82‑¾, marking its highest price since May 20. The Kansas City September hard red winter wheat contract ended the session up 42 cents at $7.20 per bushel, having touched the daily 45‑cent limit and rising to $7.23 at times, its highest level since May 19. Minneapolis September spring wheat rose 25¼ cents to close at $6.83‑¼ per bushel.

Managed commodity funds continue to hold a large net short position in CBOT wheat futures, leaving the market vulnerable to short‑covering rallies if price momentum persists.