CHICAGO- US wheat futures tumbled on Friday to levels not seen since Russia’s invasion of Ukraine in February disrupted flows from the Black Sea breadbasket region, pressured by a firmer US dollar and rising global supplies from the northern hemisphere’s harvest.
Soybeans and corn retreated in tandem with wheat in risk-off trading ahead of the long US Independence Day holiday weekend and worries about tepid demand and the broader economy.
High inflation and a rush by central banks to raise rates and stem the flow of cheap money has fueled sell-offs across markets, pressuring grains prices that had spiked to near record peaks following Russia’s invasion.
“The outside markets are certainly a factor, especially if you’re talking about a Federal Reserve policy shift and a dollar that’s exploding higher,” said Mike Zuzolo, president of Global Commodity Analytics.
