Chicago Close: Wheat Continues Rise on Geopolitical Worries 

After strong gains a day earlier, wheat futures continued to rise on Wednesday amid fears of an escalating conflict in Ukraine. 

Russian President Vladimir Putin said in a speech the Kremlin would be mobilizing more troops to fight after a series of significant battlefield setbacks in Ukraine. Putin also hinted at the potential use of nuclear weapons in the war, which has dragged on since February. The conflict has severely crimped grain exports from Ukraine, a major international shipper of wheat, corn and other agricultural goods. However, gains in wheat were limited to increasing fears of economic recession, which could hurt demand. December Chicago wheat was up a dime at $9.03 ¾, December Kansas City gained a dime to $9.67, and December Minneapolis added a nickel to $9.64 ¼. 

Corn ended lower as the US dollar gained on ideas the Federal Reserve was poised to announce a significant interest rate hike in a bid to tame inflation. In an announcement this afternoon, the Fed raised its trending setting rate by another 75 basis points to 3.25% - the highest since 2008. December and March corn both closed down 6 ½ cents to end at $6.85 ½, and $6.90 ¼. 

Soybeans were also weaker on US dollar strength. November and January beans both lost 17 ½ cents to end at $14.61 ¼ and $14.67. 

Source: DePutter Publishing Ltd.

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