U.S. wheat futures moved higher this week, with all three major contracts posting gains as weather concerns and uncertainty surrounding Black Sea exports supported the market.

December Chicago Board of Trade soft red winter wheat gained 61 cents to close at $7.61 per bushel. December Kansas City Board of Trade hard red winter wheat increased 46 cents to $8.22 per bushel, while December hard red spring wheat futures rose 30 cents to $7.58 per bushel.

Other major commodities also advanced. December CBOT corn gained 30 cents to $5.34 per bushel, and November CBOT soybeans increased 32 cents to $12.68 per bushel.

Basis levels were mixed across wheat classes and export regions. Hard red spring wheat basis weakened for grain moving to the Gulf but strengthened in the Pacific Northwest. Hard red winter wheat basis weakened for grain tributary to the Gulf while holding steady in the Pacific Northwest. Soft red winter wheat basis weakened out of the Gulf, while soft white prices strengthened in the Pacific Northwest.

For the week ending Aug. 20, net U.S. wheat sales for 2026-27 delivery totaled 402,500 metric tons, up 2% from the previous week and 31% above the prior four-week average. Exports totaled 427,800 metric tons, with shipments primarily destined for the Philippines, Japan, Bangladesh, Mexico and South Korea.

Widespread heat and generally dry conditions across portions of the Plains contributed to further drought expansion during the week. Scattered thunderstorms provided localized improvements in parts of Nebraska and the central Plains, while limited precipitation led to some drought deterioration in portions of the Northern Plains.

Black Sea tensions remained a key factor for wheat markets. Continued attacks on port infrastructure and uncertainty surrounding export flows from Russia and Ukraine raised concerns about global supplies. The developments helped push wheat futures to their highest levels since 2023.

Shipping markets also remained under pressure from restrictions on Panama Canal transits. Strong demand for vessel slots pushed auction prices to record levels, with a South Korean shipper reportedly paying $5.3 million for a September transit slot. The high price underscored concerns about vessel capacity and rising transportation costs.

The Baltic Dry Index rose 11% during the week to 3,107 as strong cargo demand and continued Panama Canal disruptions supported freight markets. The Baltic Panamax Index increased 10% to 2,292. Tight vessel availability and continued grain demand from the Atlantic basin helped support dry bulk freight rates.

The U.S. dollar edged higher during the week, recovering from a three-month low against the euro. Expanded Iran sanctions provided support for the currency, while concerns about Treasury buybacks continued to weigh on the dollar. The dollar index rose to 99.20.

Source: U.S. Wheat Associates, "Weekly Price Report August 27th, 2026"