CBOT wheat ends higher on geopolitical tensions

Apr 19, 202420:33 UTC

Chicago Board of Trade wheat futures ended higher on Friday on escalating tensions in the Middle East, a big wheat importing region, as well as dry conditions in the U.S. Plains wheat belt.

Explosions echoed over an Iranian city in what sources described as an Israeli attack, but Tehran indicated it had no plans for retaliation, a response that appeared gauged toward averting a region-wide war.
Grain traders had feared that expanding violence in the Middle East could affect shipments in the region and from Russia, the world's biggest wheat exporter and an ally of Iran.
CBOT July soft red winter wheat (WN24) settled up 13-3/4 cents at $5.66-3/4 per bushel. For the week, the contract ended down 4 cents a bushel or 0.7%.
Commodity funds hold a hefty net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering.
K.C. July hard red winter wheat (KWN24) settled Friday up 7-3/4 cents at $5.83 a bushel and MGEX July spring wheat (MWEN24) rose 9-1/2 cents to finish at $6.52-1/2 a bushel.
Traders continue to monitor expanding dryness in portions of the southern Plains winter wheat belt. The U.S. Department of Agriculture said 24% of the U.S. winter wheat crop was located in a drought area as of April 16, up from 18% the previous week.
China is set for another year of bumper harvest of grains and oilseeds, helped by expanded planting of winter wheat and rapeseed and healthy growth of seedlings, the country's agriculture ministry said.