Ukraine Attack on Novorossiysk Sends Wheat Futures Soaring
Ukraine's attack on Russian grain export terminals in Novorossiysk has sent wheat futures soaring around 3% as concerns grow about disruption to global supplies.
The Chicago Board of Trade most active wheat rose to $6.49-1/2 a bushel, while soybeans and corn also gained ahead of the US Agriculture Department's supply/demand report later in the day.
Industry sources told Reuters that two major Russian grain terminals at the Black Sea port of Novorossiysk suspended operations following the Ukrainian drone strikes overnight.
Russia is the world's largest wheat exporter, with most of its exports shipped via Black Sea ports including Novorossiysk. The attack has sparked fears that Ukraine's continued attacks could severely reduce Russia's wheat export shipments, transferring demand to other origins.