Wheat Prices Climb on Russia Ukraine War Escalation Fears

Wheat prices continued their upward trend on Monday, marking the third consecutive day of gains. The rise came amid escalating tensions between Russia and Ukraine, with Russia threatening to intensify its military strikes on Ukraine’s infrastructure. This escalation has raised concerns about further disruptions to grain supplies through the Black Sea, a critical trade corridor for global wheat shipments.

The most-active wheat contract in Chicago saw a peak increase of 1% before settling slightly lower. As of 12:12 p.m. in Singapore, wheat prices edged up 0.6% to $6.87 a bushel, reflecting the longest rising streak in a month. Meanwhile, corn prices fell 0.3% to $4.9625 a bushel, while soybeans gained 0.2%.

The potential impact of Russia’s threats on grain shipments could hinder Turkey’s efforts to mediate and restore supply routes. CRM AgriCommodities noted that while Turkey’s mediation might eventually reopen shipments, any deal could take months to materialize. Continued disruptions are likely to sustain higher wheat prices, while progress in negotiations would reduce the risk premium.