U.S. wheat futures edged higher on Thursday as a third night of Russian attacks on Ukrainian ports renewed concerns about disruptions to exports needed to meet world demand and stave off rising food prices.
Wheat futures have risen in four of the previous five sessions and the benchmark Chicago Board of Trade contract jumped 8.5% on Wednesday, its biggest daily rally since right after the war started on the prospect of grain flows being cut off from two key global suppliers.
Ukraine’s Defence Ministry said on Thursday it would consider all ships traveling to Russian ports and Ukrainian ports on the Black Sea that are occupied by Moscow as potential carriers of military cargo from July 21. That announcement was made a day after the Kremlin warned that ships heading to Ukraine’s Black Sea ports could be considered military targets.
“That also raised the risk of retaliation in a way that might threaten the willingness of shippers to haul Russian grain through the Black Sea.” Arlan Suderman, chief commodities economist at StoneX, said in a client note. “The implications are massive for world wheat supplies.”
Corn and soybean futures were weaker on profit-taking setbacks but declines were kept in check by outlooks for hot weather in key U.S. Midwest growing areas.
At 10:01 a.m. CDT (1501 GMT), CBOT September soft red winter wheat futures were up 3-1/4 cents at $7.31 a bushel.
“Russia’s overnight attack on infrastructures at the port of Odesa will have served to remind participants and observers as to the risks involved in maintaining Black Sea trade flows without a guarantee of safety,” BMI Research, a unit of Fitch Group, said in a note.
CBOT November soybeans were 6-1/2 cents lower at $14.25-1/2 a bushel and CBOT December corn was off 6 cents at $5.47 a bushel.