US wheat futures pare some gains on easing Middle East concerns

Published Apr 20, 2024

Tridge summary

Following reports of Israeli missile strikes in Iran, Chicago wheat futures surged by over 2%, driven by fears of an escalation in Middle East conflict. Although Tehran's downplaying of the incident led to a partial retraction of these gains, the event introduced significant market volatility. Soybeans and corn prices also increased, but to a lesser extent. The commodities market's sensitivity to geopolitical tensions is evident, with concerns over the impact on Middle East oil supplies and global agricultural shipments, particularly given Russia's role as a major wheat exporter and its alliance with Iran. Despite these geopolitical tensions, the global abundance of wheat, soybeans, and corn has maintained prices near their lowest since 2020.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Chicago wheat futures rose more than 2% on Friday as reports of Israeli missile strikes in Iran fuelled fears of an escalating conflict in the Middle East, before paring nearly half of their gains as Tehran played down the incident. Soybeans and corn were also higher, although to a lesser extent,but all three contracts were hovering close to their lowest levels since 2020 amid plentiful supply. The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 1.2% at $5.59-3/4a bushel, as of 1120 GMT, having risen nearly 4% after the first reports of the strike emerged. CBOT corn Cv1 was 0.7% higher at $4.39-1/2 a bushel and soybeans Sv1 were up 0.2% at $11.51a bushel. Explosions echoed over an Iranian city on Friday in what sources described as an Israeli attack, but Tehran played down the incident and indicated it had no plans for retaliation – a response that appeared gauged towards averting a region-wide war. Oil prices LCOc1 also pared their gains after having ...
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