Wheat Futures Rebound Amid Black Sea Attacks

Wheat futures rose more than 1% to around $6.70 per bushel in late July, recovering further from sharp losses on July 27 as escalating risks to Black Sea grain shipments stoked concerns over tightening global supplies. Concerns over Black Sea grain exports worsened after three major Russian grain terminals reportedly limited truck deliveries, citing heightened security risks and logistical disruptions linked to recent attacks in the Sea of Azov. Further raising fears of supply disruptions, a missile strike hit the Russian port city of Taganrog, a key grain-export hub on the Sea of Azov. The latest developments came as Russia and Ukraine continued targeting vessels and port facilities, raising concerns about the security of one of the world's most critical grain-export corridors and heightening fears of disruptions to global shipments. Meanwhile, investors watched reports that Ukraine was seeking to maintain vessel traffic through its major export ports, despite official denials.

Wheat fell to around $6.50 per bushel, extending losses from the more than two-year high of $7.06 reached on July 22, following a sharp drop in crude oil prices after the United States and Iran paused strikes, raising hopes that diplomatic efforts could de-escalate tensions in the Middle East. Despite the pullback, traders remained focused on risks to global wheat supplies as attacks by Russia and Ukraine in the Black Sea and Sea of Azov regions continued to disrupt grain infrastructure and threaten export flows. Ukrainian authorities reported that air attacks caused casualties in Rostov-on-Don, a major Russian export hub near the Sea of Azov, and in Belgorod, highlighting ongoing tensions around key grain routes. Meanwhile, Allseeds said it was halting operations in Ukraine's southern Odesa region. However, discussions over mechanisms to maintain vessel movements through Ukraine's Black Sea ports have raised hopes that exports may avoid major disruptions.

Wheat decreased 5% to 661.47 USd/Bu