CBOT wheat rally continues on Russian drought impacts, war risks
CHICAGO, Oct 2 (Reuters) -Chicago Board of Trade wheat futures rose further on Wednesday, setting a new 3-1/2-month high, as concern grew about drought in Russia while a drone attack on a Ukrainian river port kept attention on war risks, market analysts said.
CBOT December soft red winter wheat WZ24 settled up 16-1/4 cents at $6.15-1/4 a bushel. Earlier in the session, the most-active wheat contract Wv1 climbed to $6.17-1/4 a bushel, its highest level since June 14.
K.C. December hard red winter wheat KWZ24 settled up 21 cents at $6.19-1/4 a bushel and MGEX December spring wheat MWEZ24 closed up 14-1/4 cents at $6.49 a bushel.
Russia's weather forecast agency said on Wednesday that drought conditions for winter crops in some key producing regions were "worse than usual" in October.
Russia's grain exporters union said export volumes from the first quarter of the 2024-2025 season were excessive and called for limits to be imposed through a quota mechanism.
Analysts have downgraded expectations for Australia's upcoming harvest by well over a million tons due to lack of rainfall and widespread frost.
A Russian drone attack damaged a grain facility in Ukraine near its Danube river border with Romania, Ukrainian officials said. That put attention back on risks to Black Sea trade from Russia's conflict with Ukraine, analysts said.
Reporting by P.J. Huffstutter;
Editing by Mark Porter
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