CBOT wheat hits one-week top on escalating Black Sea tensions
CHICAGO, Nov 19 (Reuters) -Chicago Board of Trade wheat futures rose on Tuesday for a third straight session, setting a one-week high on fears of an escalating war in the Black Sea breadbasket region as tensions mounted between Moscow and Washington over Ukraine, traders said.
CBOT most-active March soft red winter wheat WH25 settled up 2 cents at $5.67-3/4 per bushel, paring gains after reaching $5.75-3/4, its highest since Nov. 12.
K.C. March hard red winter wheat KWH25 ended up 2-1/2 cents at $5.69-1/2 a bushel and Minneapolis March spring wheat MWEH25 rose 1 cent to finish at $6.05-1/4 a bushel.
U.S. wheat futures rose after Ukraine used U.S. long-range missiles to strike Russian territory, taking advantage of newly granted permission from the outgoing Biden administration on the Ukraine war's 1,000th day.
The moves raised fears of tit-for-tat attacks on export infrastructure, analysts said. GRA/
Meanwhile, Ukraine's wheat harvest may increase to up to 25 million metric tons next year from an expected 22 million tons this year thanks to a larger sowing area, an agriculture official told Reuters.
Rallies were capped by improving crop prospects in the U.S. Plains wheat belt. The U.S. Department of Agriculture late Monday rated 49% of the U.S. winter wheat crop in good-to-excellent condition, up from 44% the previous week and the strongest rating for this time of year in five years, after storms recharged soil moisture.
European wheat futures closed modestly higher on concerns over Black Sea tensions and talk of heavy spot demand from Morocco, traders said.
Friday is the last trading day for CBOT, K.C. and Minneapolis December wheat options.
Reporting by Julie Ingwersen; Editing by David Gregorio
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