Wheat prices rise amid Russia's threats to escalate the war in Ukraine - media
Kyiv • UNN
Wheat futures are rising due to the threat of new Russian strikes on Ukraine and disruptions to supplies via the Black Sea. The price reached $6.87 per bushel.
Wheat futures are rising for the third consecutive day after Russia threatened to escalate the war in Ukraine, potentially worsening disruptions to global grain supplies through the Black Sea. Bloomberg reports, according to UNN.
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The most active wheat futures contract in Chicago rose by a full 1% on Monday, October 5, before paring its gains, with grain prices now experiencing their longest winning streak in a month, the publication reports.
This came after the Russian government said its military would intensify strikes on Ukraine's infrastructure, according to a statement circulated by the Defense Ministry on Sunday. Since July, wheat shipments from the Black Sea, one of the world's largest grain-trading corridors, have been severely restricted. Any further escalation of the conflict could hinder Turkey's efforts to protect grain supplies through the region, the publication reports.
"Turkey's mediation may eventually restore supplies, but the deal could take months," CRM AgriCommodities said in a Friday note. "Progress would remove the risk premium, while further disruptions support prices."
As of 12:12 p.m. in Singapore, wheat prices had risen 0.6% to $6.87 per bushel. Corn prices fell 0.3% to $4.9625 per bushel, while soybean prices rose 0.2%.