U.S. wheat futures hit a 2023 high as geopolitical risks and adverse weather threaten global supply chains.
U.S. wheat futures settled above $7 per bushel for the first time since late 2023, driven by escalating Black Sea tensions and extreme weather in key growing regions. The rally reflects concerns over disrupted exports and reduced yields in the U.S. Plains and Western Europe.
Prices last crossed this threshold in December 2023 amid similar supply constraints. Analysts had anticipated a gradual rise but not an immediate breach of the $7 mark. Global wheat stocks remain tight, amplifying sensitivity to geopolitical and climatic disruptions.
Markets reacted swiftly, with futures climbing nearly 2% in a single session as traders priced in prolonged supply risks.