Chicago wheat futures rose to a three-year high on Thursday, extending the previous session's limit-up rally, as reports that Russia may intensify strikes on Ukraine fueled fears of prolonged disruptions to the massive Black Sea grain trade.
Corn and soybeans eased on profit-taking after setting multiyear highs on Wednesday when they tracked the jump in wheat.
The most-traded wheat contract on the Chicago Board of Trade was 13 cents higher at $7.61-1/2 per bushel.
It earlier reached $7.67-1/2, its highest level since July 2023, extending Wednesday's rally, when the benchmark climbed the daily limit of 45 cents, or 6.4%.
The market was rattled by a Bloomberg News report that Russia was considering stepping up ballistic missile strikes on Ukraine after concluding that efforts to negotiate a peace deal have reached a dead end.
That came after tit-for-tat attacks in recent weeks already brought grain loadings at Russian and Ukrainian Black Sea ports to a virtual halt. Wheat crops in France and in the U.S. Plains that were damaged by blistering heat and drought set up the market for a rally before the latest developments in Russia's war in Ukraine, industry players said.
"This was the match that lit the fire, but it's been smoldering for a very long time," said Jon Marcus, principal owner of Lakefront Futures.
In the latest sign of importers seeking other origins during what is usually a peak period for Russian and Ukrainian exports, two vessels are due to call in France in the coming days to load wheat for Egypt, according to shipping data and traders.
Egypt, the world's largest wheat importer, sourced more than 80% of its wheat imports from Russia and Ukraine in the first half of 2026.
CBOT corn was down 2 cents at $5.34-1/2 a bushel while soybeans were 1-1/4 cents higher at $12.67-1/2 a bushel. Corn and soybean futures ran in to a round of profit-taking on Thursday after rallying on Wednesday.
The corn market has also drawn support from decreasing expectations for U.S. corn yields in the upcoming harvest.
Soybeans have been underpinned by a run of Chinese demand, though a pullback in crude oil has dented prices for soyoil, which is heavily used for biodiesel fuel.
"Pullbacks are going to be short-lived and buyers are waiting in the wings," Marcus said.
(Reuters)
