Wheat Edges Higher on Russia’s Threats to Escalate Ukraine War Ben Westcott Wheat futures moved higher for a third day after Russia threatened to escalate the war in Ukraine, potentially worsening disruptions to global grain supply through the Black Sea. The most-active wheat contract in Chicago rose by as much as 1% on Monday before paring gains, with the grain currently on its longest rising streak in a month. It comes after the Russian government said its military would be intensifying strikes on Ukraine’s infrastructure in a message distributed by the Defense Ministry on Sunday.
Since July, wheat supplies have been severely constrained coming out of the Black Sea, one of the world’s largest trade corridors for the grain. Any further escalation in the conflict could hamper attempts by Turkey to protect grain shipments through the region.“Turkey’s mediation may eventually restore shipments, but a deal could take months,” CRM Agri Commodities said in a note on Friday. “Progress would remove risk premium, while continued disruption supports prices.”.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing