Wheat rises, near two-year high on Black Sea supply woes

Chicago wheat futures rose on Monday, trading close to last week's two-year high as disruptions to Black Sea shipments continued to buoy prices.

Soybeans rose to a two-month high as crude oil prices rallied on escalating U.S.-Iran attacks.

"We have issue with Russian and Ukrainian wheat supply, which is driving the price rally," said one trader in Singapore. "Supplies in the U.S. and Europe are already tight because of the dryness."


The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.2% to $6.83-3/4 a bushel by 0327 GMT, trading close to Friday's highest since June 2024.

Soybeans were up 0.4% at $12.08-1/4 a bushel after climbing to their highest since late May earlier in the day, while corn rose 0.8% to $4.71 a bushel.

Strikes on vessels by Ukraine and Russia are disrupting wheat shipments during the peak marketing ?season for Black Sea exports.

Wheat prices have been supported by attacks in the Black Sea and the Sea of Azov as the two countries stepped up hostilities in a zone vital for grain exports.

Russia attacked two Ukrainian Black Sea port cities on Friday, killing three people, Ukrainian officials said, as Moscow intensifies pressure on Ukraine's key trade routes.

Soybean prices have been supported by gains in crude oil with increasing use of vegetable oils in biofuel production.

Strong demand, led by top importer China, provided additional support for soybeans. The U.S. Department of Agriculture last week confirmed private sales of 340,000 metric tons of U.S. soybeans to China, as well as 110,000 tons to undisclosed destinations and 256,634 tons to Mexico.

The condition of France's grain maize crop deteriorated again last week, FranceAgriMer said on Friday, as exceptionally dry and hot weather continued to bite in the European Union's largest grain producer.