U.S. wheat futures surged on Monday, supported by information that Russia had attacked Ukrainian port cities, including to issues about probably prolonged disruptions to shipments out of the Black Sea space.
Wheat (W_1:COM) for July supply settled +5.1% to $10.93 per bushel on the CBOT, which helped raise July corn (C_1:COM) +2.1% to $7.42 1/2 per bushel, whereas soybeans (S_1:COM) closed +0.1% to $16.99 1/4 per bushel.
The missile strikes “undermined the credibility of Russia’s claims that it had no intention of blocking the circulate of food-based commodities out of Ukraine’s ports,” stated Arlan Suderman, chief commodities economist at brokerage StoneX, in line with Reuters.
Ukrainian President Zelenskiy stated there could possibly be as a lot as 75M metric tons of grain caught in Ukraine by this fall.
Australia, one of many world’s largest wheat exporters, is forecast to produce another huge harvest this season, which might finally assist include rising costs.
Gains in corn are not likely to last, Charlie Sernatinger of ED&F Man Capital stated, in line with The Wall Avenue Journal: “Until we flip the blowtorch on [U.S.] Midwest climate, that is nothing greater than a brief protecting rally in a bear market.”
Wheat and corn futures fell sharply final week on the possibility that Russia could lift its blockade of Black Sea ports.