Wheat Prices Surge Amid Russian Port Attacks

Wheat prices surged yesterday amidst heavy attacks on Russian grain terminals in Novorossiysk, forcing the shutdown of their operations.

The USDA's August world wheat balance was largely unchanged, despite analyst expectations for a significant reduction in export forecasts from Russia and Ukraine.

However, the market's reaction to the attacks was more pronounced than its response to the USDA report data, with September wheat futures rising by 2.1-3.6% across various exchanges.

The price increases were driven by concerns over supply disruptions and increased demand in the second half of the season, with December futures trading $6-7 per ton more expensive than September ones.