Wheat gains for third session on fears of escalation in Russia-Ukraine war

Geopolitical tensions continue to support prices as supply concerns linger

Wheat futures rose for a third consecutive session on Tuesday, extending gains from the previous session as geopolitical tensions between Russia and Ukraine continued to support prices. The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.5% at $9.33 a bushel, as of 07:18 GMT. Prices have gained around 5% so far this week. **Supply concerns** The gains come amid ongoing concerns about global wheat supplies, as the conflict in Ukraine continues to disrupt exports from the Black Sea region. Russia and Ukraine are major wheat exporters, and the war has led to a sharp decline in shipments from the region. **Escalation fears** Traders are also worried about the potential for an escalation in the conflict, which could further disrupt wheat supplies. Russia has been accused of targeting Ukrainian grain storage facilities, and there are concerns that the conflict could spread to other parts of the region. **Other factors** In addition to geopolitical tensions, other factors are also supporting wheat prices. These include concerns about drought conditions in the United States and other major wheat-producing regions, as well as strong demand from importers. **Outlook** Analysts say that wheat prices are likely to remain supported in the near term as geopolitical tensions continue and supply concerns linger. However, they also note that prices could come under pressure if the conflict in Ukraine is resolved or if there is a significant improvement in global wheat production.