Inclement weather in Ukraine and surging demand prompted wheat futures to climb in value on Wednesday, Bloomberg reports.
The nation verified that it did prohibit exports of the grain in the aftermath of parched weather. A drought is forecast to slash the combined harvests of wheat in Ukraine, Russia and Kazakhstan by as much as 37 percent this year. The U.S. Department of Agriculture is slated to reduce inventories to their lowest in roughly 48 months.
"The supply-and-demand balance is very tight," broker Arnaud Saulais with Starsupply Commodity Brokers in Switzerland told the news source. "Long term, we're still in a situation that should keep prices high."
At 9:35 a.m. on Thursday, wheat futures gained 0.69 percent, a 0.06 cent increase to $8.7475 per bushel.
Cattle Network reports analysts are closely eyeing crops in Australia and the U.S. after the grain's losses last week amounted to roughly 2 percent.
Ukraine's ban on shipments of the grain will begin in the middle of next month as exports project to climb as high as 5.3 million metric tons in November.
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