Wheat hits four-month high after attack on Novorossiysk port

Wheat prices rose to a four-month high following a major drone strike by Ukrainian forces on Russia’s Black Sea port of Novorossiysk, a key hub for grain and oilseed exports. Local authorities reported that a fuel depot at an oil terminal and nearby coastal facilities were damaged during the attack, but it remains unclear whether any grain infrastructure was affected. Chicago wheat futures climbed 1% to the highest level since early July before easing slightly.

“Novorossiysk is the main port for Russian grain exports,” said Tobin Gorey, strategist at Cornucopia Agri Analytics. He added that if the attack disrupts shipments for an extended period, traders will need to source grain from elsewhere, which is a challenging task.

Separately, traders are watching for the release of the U.S. Department of Agriculture’s (USDA) World Agricultural Supply and Demand Estimates report, which was delayed due to the temporary government shutdown. Publication of the data is now expected on Friday.

Over the past week, grain and soybean prices have risen in anticipation of the delayed report: Chicago corn futures are up more than 6%, while soybean futures have increased around 3%.

Analysts note that the events in Novorossiysk, combined with expectations for the USDA report, could create additional volatility in global grain markets and influence prices in the coming weeks.

Tags: Ukraine, Russia, prices, wheat, war, Novorossiysk port