Chicago wheat futures: Wheat Eased further from a 14-year high peak of $12.8 per bushel to below $11, after the USDA’s outlook for world supplies topped all pre-report estimates, thanks to a more significant Australian crop.
Still, heavy sanctions and restrictive measures from western economies after Russia invaded Ukraine nearly halted exports from the Black Sea region. Multinational food companies such as Bunge and ADM have closed facilities there, while the world’s biggest container ship operator, Maersk/MSC, suspended service to Russian ports.
Wheat export estimations from Russia were lowered by 3 million tons to 32 million, while those from Ukraine were cut by 4 million tons. Such supply disruptions came on the heels of an already tight market with wheat stocks in major exporting countries at low levels.