FX.co ★ Wheat Futures Rebound Amid Black Sea Attacks

Wheat futures have rebounded to $5.15 per bushel, recovering from last week's significant downturn—the steepest since August—and climbing from a two-month low of $5.04 observed on December 17. This upward movement has been driven by renewed concerns about Black Sea grain exports, following intensified hostilities affecting Ukrainian and Russian infrastructure. Particularly, Russia has escalated its attacks on Ukrainian ports in Odesa, including Pivdennyi, known as the largest in the region. During the weekend, a spokesperson for Vice Prime Minister Oleksiy Kuleba reported damage to a shipping terminal operated by the oilseed company Allseeds. Concurrently, Russia announced that a drone attack compromised infrastructure and vessels at the Black Sea's Taman port, a hub for grain, fertilizer, and oil shipments. Nonetheless, these gains are being kept in check by expectations of plentiful global supply. According to the USDA's December World Agricultural Supply and Demand Estimates (WASDE) report, global wheat supplies are anticipated to grow by 7.5 million tons, reaching a total of 1,097.8 million tons, largely due to increased production forecasts for major exporters such as Argentina and Australia.