Wheat climbs as dry weather, Ukraine war put supply risks in focus

Chicago wheat extended gains on Thursday as traders assessed whether increased tensions between Russia and Ukraine and persistent dryness in grain production areas around the world may curb global wheat exports, analysts said.

Corn and soybean futures tipped down as investors adjusted positions before a U.S. Department of Agriculture supply-demand report on Friday that will feature new estimates of the U.S. corn and soybean harvests, reports Reuters.

"The futures market usually sees significant moves in the October report," said Brian Basting, analyst at Advance Trading. "People are waiting to see if they should go long or short."

The most-active wheat contract on the Chicago Board of Trade Wv1settled up 4-3/4 cents at $6.03-3/4 a bushel, rising for a fourth consecutive session.

Russia remained the focus in wheat markets as participants grappled with signs that harsh weather is reducing wheat production in major export zones.

Ukrainian officials also said a Russian missile attack in the Odesa region that killed six people on Wednesday damaged a container ship, the latest vessel to be hit in recent days as Moscow intensifies strikes on Ukraine's ports.

"There's uncertainty around the world and a lot of uncertainty about the Black Sea shipping situation," Basting said. "It's unsettled."

Drought has slowed winter wheat sowing in Russia, while in Argentina the Rosario grains exchange on Wednesday trimmed its estimate for the 2024/25 wheat harvest due to insufficient rainfall.