CBOT Closes at $520.75 Per Bushel
Longest Winning Streak Since April
Russia Launches Drone Attacks on Odesa, Key Grain Export Hub
U.S. Drought in Major Grain Belt Also Drives Prices Higher
On December 24, wheat futures prices at the Chicago Board of Trade (CBOT) closed at $520.75 per bushel, marking a fifth consecutive trading day of gains. This represents the longest upward streak since April, driven by growing supply concerns stemming from the Russia-Ukraine war and climate change.
According to Bloomberg, the Russian military launched missile and drone attacks across Ukraine on the same day. As a result, port facilities and a civilian vessel in the southern Odesa region sustained damage, and there were civilian casualties.
Odesa is Ukraine's third-largest city after Kyiv and Kharkiv, serving as a key economic hub. In particular, since August 2023, Odesa has acted as the main gateway for Ukrainian grain exports, which travel along the coasts of Romania and Bulgaria to reach T?rkiye. Reuters reported, "Both countries are major exporters of grain and edible oil, and heightened tensions risk disrupting supplies from this region."
Drought conditions in the United States are also affecting wheat futures prices, as drought has intensified in major U.S. agricultural regions. In a report released the same day, the U.S. Department of Agriculture stated, "Record-high temperatures and dry weather are occurring in the central and southern Plains." Weather forecasting company Vaisala also reported that these conditions are expected to persist throughout the week, with moisture deficits continuing in both northern and southern areas.
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