Wheat futures on the Chicago Exchange jumped 3.2% on Tuesday, January 18, due to concerns about rising tensions between Russia and Ukraine, as well as cold weather that could threaten crops in dry areas of the United States.
“If there is a problem between Russia and Ukraine, it could be very disruptive to global wheat trade,” said Mark Gold, managing partner of Top Third Ag Marketing.
March soft red winter wheat futures rose 27.5 cents to $7.69 a bushel ($282.56/ton). The most active wheat contract on CBOT showed the largest daily gain since October 1.
Quotes were also supported by USDA, which reported that weekly wheat export inspections amounted to 369.2 thousand tons against 234.4 thousand tons in the previous week and close to the high level of market forecasts.
In addition, Turkey’s State Grain Committee (TMO), according to preliminary data, purchased about 335 thousand tons of wheat in an international tender, and this also contributed to the rise in grain prices.