Wheat Futures Rise 3% After Attack and Fire at Major Russian Grain Port
Wheat futures rose 3% after an attack on a major Russian grain-export port intensified concerns about disruptions to food shipments from the Black Sea region. Russia’s Black Sea port of Novorossiysk is an important oil and grain terminal as well as a naval base. The port caught fire after a large-scale drone attack. Satellite imagery from NASA’s Fire Information for Resource Management System showed heat anomalies in the port area, which may indicate a fire. The most-active Chicago wheat futures contract rose as much as 3.1%, its biggest gain in a week. Soybean and corn prices also moved higher. An escalation in recent reciprocal attacks by Ukraine and Russia has increased the risk to export shipments from this globally important grain-producing region. Ukraine is considering transporting some grain by rail through Moldova as a safer alternative route. “If the Novorossiysk port is out of operation for any length of time, Russian wheat exports would effectively come close to a complete halt, and importing countries would have to start looking for alternative sources of supply,” said Richard Buttenshaw, executive director of Marex’s grain and oilseeds business. He added that wheat prices could move back toward recent highs if the port remains closed.
Russia’s Black Sea port of Novorossiysk is an important oil and grain terminal as well as a naval base. The port caught fire after a large-scale drone attack. Satellite imagery from NASA’s Fire Information for Resource Management System showed heat anomalies in the port area, which may indicate a fire.
The most-active Chicago wheat futures contract rose as much as 3.1%, its biggest gain in a week. Soybean and corn prices also moved higher.
An escalation in recent reciprocal attacks by Ukraine and Russia has increased the risk to export shipments from this globally important grain-producing region. Ukraine is considering transporting some grain by rail through Moldova as a safer alternative route.
“If the Novorossiysk port is out of operation for any length of time, Russian wheat exports would effectively come close to a complete halt, and importing countries would have to start looking for alternative sources of supply,” said Richard Buttenshaw, executive director of Marex’s grain and oilseeds business. He added that wheat prices could move back toward recent highs if the port remains closed.