The wheat market showed significant increases this Wednesday (20), driven by the escalation of the conflict between Russia and Ukraine, according to an analysis by TF Agroeconômica. On the Chicago Board of Trade (CBOT), the December 2024 contract for soft wheat SRW, relevant for Brazilian producers and exporters, rose 0.50% (2.75 cents/bushel), closing at $552.50.
The March 2025 contract advanced 0.79% (4.50 cents/bushel) to $572.25. In Kansas, HRW durum wheat for December rose 0.63% (3.50 cents/bushel) to $561.75, while Minneapolis HRS wheat rose 0.89% (5.25 cents/bushel) to close at $592.00. On Euronext Paris, December milling wheat rose 0.80% (1.75 euros) to close at €219.75 per tonne.
Geopolitical conflict puts pressure on market gains
Analysts pointed to the escalation of conflict between the world's two largest wheat exporters and corn as the main factor behind the increase in prices. This scenario destabilized the market and reversed the declines observed during the night session on the CBOT. Investment funds reacted by buying back open contracts to protect themselves against possible sudden price increases.
Russia currently leads the world as the largest exporter of wheat, while Ukraine ranks fourth as a supplier of corn. The uncertainty about the continuity of the supply of these commodities is directly reflected in international markets, increasing premiums and moving futures contracts.
Positive trends in other exchanges
Market closures in other regions, such as Argentina, London and Australia, also showed positive trends, according to the closing tables released. This movement reinforces the outlook for growth in the sector, with increased attention to the developments of the geopolitical conflict.
Impacts on the commodities sector
Rising prices highlight the interconnection between wheat and corn in the feed chain, which is directly affected by geopolitical tensions. With markets reacting to the escalation of the conflict, analysts highlight the need for constant monitoring, especially for producers and exporters who depend on more stable conditions.
Source: Leonardo Gottems | Notícias Agrícolas
