Wheat Holds Gains as Ukraine Strike Disrupts Russian Grain Exports

Chicago wheat futures remained steady on Thursday, holding onto sharp gains from the previous session after Ukraine attacked grain terminals at Russia's Novorossiysk port, further disrupting Black Sea grain exports.

The most-traded wheat contract on the Chicago Board of Trade was flat at $6.53 a bushel, following a 3.6% rise on Wednesday. Corn futures slipped 0.3% to $4.79-1/2 a bushel after surging 4.4% to a two-week high, while soybeans were little changed at $11.83-3/4 a bushel.

The Ukrainian strike on Novorossiysk forced two major grain terminals to halt operations, adding to weeks of attacks that have reduced shipments from both Ukraine and Russia, two of the world's largest grain suppliers. Both nations have been scrambling to redirect exports to alternative routes.

Wheat prices remain up nearly 30% this year, supported by drought damage to U.S. winter wheat and the ongoing attacks on export infrastructure.

In its latest report, the U.S. Department of Agriculture (USDA) said U.S. farmers would harvest their second-largest corn crop on record this autumn, as larger plantings offset lower yields. However, the department also forecast strong corn demand, trimming its end-of-season U.S. stocks estimate to 1.653 billion bushels from 1.790 billion bushels. The USDA also lowered its U.S. soybean yield estimate but projected slightly higher production than previously thought.