FX.co ★ Wheat Rises Toward 2-Month High

Wheat futures in the United States have surpassed $5.35 per bushel, nearing the two-month peak of $5.40 recorded on January 29th. This price movement reflects persistent supply risks. The recent resurgence of severe cold spells across the US Plains and sections of southern Russia has reignited worries about winterkill, affecting already stressed crops. These supply anxieties have been exacerbated by earlier arid conditions that limited the protective snow cover in crucial growing regions. In the Black Sea area, adverse weather conditions and ongoing logistical challenges continue to hinder export activities. Additionally, uncertainty surrounding Russia's forthcoming export quota has intensified expectations that global wheat availability could become more restricted as the marketing year progresses. Consequently, U.S. export figures have remained robust as global consumers pivot away from Black Sea routes due to the military tensions stemming from the conflict between Russia and Ukraine.