Wheat Prices Plummet After Reaching Three-Year High on Black Sea Disruptions
Chicago wheat futures dropped on Monday after reaching a three-year high in the previous session due to grain export disruptions in the Black Sea region.
The most-traded wheat contract on the Chicago Board of Trade (CBOT) fell by 0.54% to $7.79-3/4 a bushel, while corn gained 0.8% to $5.40-3/4 a bushel and soybeans rose 0.37% to $12.92-3/4 a bushel.
The wheat futures surge on Friday was supported by reports that Russia's strikes could include targets in the city centre of Kyiv and critical infrastructure elsewhere in Ukraine, causing concerns about war risks to shipping in the Black Sea.
Authorities in Russia's Rostov region declared a state of emergency due to port closures and navigation disruptions in the Azov-Black Sea basin, leading to a significant accumulation of agricultural products at farms.