Wheat Climbs After Russia Fires on Black Sea Ship for Inspection

Wheat edged higher in Asian trading after the Russian navy fired on a cargo vessel in the Black Sea to stop the ship for checks, as tensions in the key waterway continue to simmer.

The dry freight carrier had been heading to the Ukrainian port of Izmail when a Russian naval patrol ship opened fire after the ship’s operators didn’t respond to a request for inspection, Russia’s defense ministry said. The vessel was then allowed to resume its trip, the ministry said, without elaborating what cargo — if any — it was carrying.

Futures climbed about as much as 1.2% before paring gains to trade 0.3% higher at $6.56 a bushel, after falling 1.5% on Friday.

On Saturday, the US Department of Agriculture raised its estimate for Russian wheat cargoes to 48 million metric tons for the 2023-24 season. That means almost a quarter of the world’s wheat trade will now come from Russia.

Grain supplies in the Black Sea region have come under threat after the expiration of a deal in July that allowed the safe passage of vessels exporting Ukrainian grains and other foodstuffs from ports near Odesa. Concerns also remain elevated after a Ukrainian drone attacked a Russian-flagged oil tanker about a week ago. Wheat still remains around 17% lower this year amid bumper harvests.

Tags: prices, wheat