Wheat Soars as Kyiv Blasts Boost Risks to Ukraine Grain Exports

Wheat futures soared more than 4% as the Ukrainian capital suffered its first strike in months, stoking concerns that the escalating war poses a fresh threat to Black Sea grain exports.

Explosions rocked Kyiv early on Monday, two days after an attack on a key bridge that links Russia to Crimea. President Vladimir Putin blamed that blast on Ukraine. The intensifying conflict calls into question whether the two sides will agree to extend the Ukraine grain-export deal that’s due to expire in about a month.

“The beginning of the week could be very nervous with the risk of increased tensions in the Black Sea basin,” Paris-based adviser Agritel said in a note.

Chicago wheat futures rose as much as 4.4% to $9.1925 a bushel, heading for the biggest gain this month. Prices have climbed 19% this year. Corn and soybeans also each rose more than 1%.

Other Ukrainian cities were also attacked, including Odesa, which is a major hub for grain cargoes and one of the three ports covered by the export pact.

In better news for crop shipments, a logjam of more than 2,000 US boats and barges is being cleared as two closures along the Mississippi River reopened on Sunday. Low water levels from prolonged drought had halted commercial shipments of commodities in the middle of the autumn harvest.

Traders are also awaiting a crucial crop report from the US Department of Agriculture on Wednesday. Analysts surveyed, on average, expect the agency to cut its outlook for global wheat and corn stockpiles.

Tags: war, Ukraine, Russia, export, grain, price