Wheat Wipes Out Year’s Gain to Help Ease Food-Inflation Fears
Wheat futures wiped out their gains for the year in Chicago, as prospects for weaker demand offset supply worries that were exacerbated by Russia’s invasion of Ukraine.
Crop markets have become mired in the downturn gripping commodities, as fears mount about slowing economic growth. Wheat harvests are also rolling in across the US and Europe, boosting near-term supplies. The grain is one of the world’s major staples and its price decline could help tame the rampant run-up in food inflation.
Benchmark wheat futures fell as much as 3.3% to $7.685 a bushel in Chicago.
Still, global crop trade remains heavily disrupted by the war, adding to worries about a worsening hunger crisis. Wheat futures had surged more than 70% through early March -- just after Russia started its attack -- and remain historically high. Negotiations this week over unblocking Ukraine’s stalled grain exports through its Black Sea ports made initial progress, while a final deal has yet to be agreed.
