By Ukumbi Afrika Global wheat prices retreated on Friday after surging to their highest level in two years, as traders locked in profits ahead of the weekend despite escalating security concerns in the Black Sea, a critical corridor for global grain exports.
The Chicago Board of Trade's most-active wheat contract settled 18.25 cents lower at $6.78 per bushel, reversing gains made earlier in the session when fears over attacks on Black Sea shipping and port infrastructure sent prices sharply higher.
The Black Sea remains one of the world's most vital grain export routes, supplying wheat and other agricultural products from Russia and Ukraine to buyers across Africa, the Middle East, and Asia. Fresh attacks on ports and merchant vessels have renewed concerns over supply disruptions and rising food costs.
Market analysts said the late-session decline reflected cautious positioning by traders ahead of the weekend amid speculation of possible diplomatic efforts to reduce tensions.
"Markets are reacting to uncertainty. While there is no clear breakthrough, traders preferred to reduce risk before the weekend," analysts noted.
Shipping Risks Mount
Ukraine's President Volodymyr Zelenskiy warned that Russia could intensify attacks on Black Sea shipping, accusing Moscow of attempting to undermine Ukraine's grain export corridor.
The deteriorating security situation is already disrupting business operations. Swiss-based vegetable oil producer Allseeds announced it is suspending activities in Ukraine's Odesa region due to increasing missile and drone strikes targeting ports and logistics infrastructure.
Ukraine's agriculture ministry also confirmed that several shipowners have temporarily halted arrivals at agricultural export ports because of heightened security risks.
Soybeans and Corn Remain Supported
Soybeans climbed to a two-year high, ending the session 9.75 cents higher at $12.53½ per bushel, while December corn closed little changed at $4.87½ per bushel after earlier reaching its highest level in more than a year.
The strength in soybean and corn prices has largely been supported by higher crude oil prices this week, as demand for biofuel feedstocks such as ethanol and biodiesel continues to underpin agricultural markets.
However, crude oil prices fell more than 4% on Friday as investors took profits and reports emerged that China is encouraging renewed U.S.-Iran peace negotiations, easing some geopolitical concerns.
Why It Matters for Africa
Many African nations rely heavily on wheat imports from the Black Sea region. Any prolonged disruption to exports could increase food import costs, pressure government subsidy programs, and contribute to higher inflation across the continent.
With shipping risks growing and geopolitical tensions remaining elevated, grain markets are expected to stay volatile in the coming weeks.
Source: Reuters
Reporters: Renee Hickman, Sybille de La Hamainde & Naveen Thukral
Editing: David Gregorio