Grain Prices Soar on Black Sea Attacks as Russia Rejects Moratorium

Global grain prices surged to a three-and-a-half-year high on Tuesday after reports that Russia had rejected a moratorium on attacks in the Black Sea and struck port infrastructure overnight. The move sparked concerns about global availability, with traders still worried about the possibility of a prolonged interruption in both Russian and Ukrainian grain shipments from the area.

The most traded wheat contract on Chicago Board of Trade rose by 1.3% to $7.84-1/4 per bushel, reaching as high as $7.92-1/4 per bushel earlier in the day - a level not seen since February 15, 2023. CBOT corn also increased, rising to its highest level in three years, while soybeans traded at more than a two-and-a-half-year high.

Donatas Jankauskas, an analyst with CM Navigator, attributed the sharp increase to overnight attacks on Odesa and Russian Baltic port Ust-Luga. However, prices fell after Turkey announced that it had developed a plan to ensure safe passage for grain through the Black Sea, which was later rejected by Russia.