Wheat Falls Most in Six Weeks as Black Sea Supply Fears Ease

(Bloomberg) -- Wheat futures fell the most in six weeks as worries eased over tightening supply from the Black Sea.

Futures for December delivery fell as much as 3.5% in Chicago, the biggest intraday decline since Aug. 5. Last week the grain climbed 5%, hitting the highest in over two months on Friday, after Ukraine reported a Russian missile had hit a grain ship in the Black Sea. The ship was damaged but managed to sail to Romania and sustained no casualties.

Resilience in Ukraine’s exports via the Black Sea over the past year has helped prices fall from record highs seen after Russia’s invasion. But potential disruptions to exports from either country — both of which are top producers of wheat — can still cause market jitters.

“The rally is overdone as it was just based on fears of Black Sea supply disruption,” said Ole Houe, chief executive officer at Ikon Commodities.

Traders assessed as well signs of weak demand from China, with little consensus on the upward price momentum. Meanwhile, money managers pulled back on net bearish bets to a 15-week low, according to Commodity Futures Trading Commission data on Friday.