Wheat jumps nearly 4% after Russia rejects Black Sea attack moratorium

Wheat prices in Chicago rose nearly 4% on September 8 after Russia rejected a proposed moratorium on attacks against vessels carrying civilian goods in the Black Sea. Futures gained as much as 3.9%, marking their biggest increase in almost two weeks, Bloomberg reported.

Wheat prices had declined ahead of the weekend amid expectations surrounding talks between US representatives and Russian President Vladimir Putin over the war in Ukraine. However, the meetings produced no concrete signs of progress, renewing market concerns about prolonged disruptions to grain shipments from the Black Sea region.

Russian Foreign Minister Sergei Lavrov said Ukraine’s proposed plan to halt attacks on vessels carrying civilian goods was unrealistic and allegedly impossible to monitor. Against this backdrop, grain market participants have again increased their focus on risks to shipping in the Black Sea.

In recent months, attacks on port and grain infrastructure in the Black Sea region have reduced exports of wheat, corn and other agricultural commodities. The Black Sea remains one of the key routes for global grain trade, meaning disruptions to shipping directly affect assessments of supply risks.

Analysts expect wheat prices to remain largely dependent on developments in the Black Sea in the near term. Further escalation could support prices, while lower risks to shipping could ease pressure on the market.

Tags: war, Ukraine, Russia, prices, wheat, futures