Wheat Prices Surge as Russia Escalates Attacks on Ukraine
Global wheat prices surged Wednesday after reports of Russia preparing to escalate attacks on Ukraine. The prospect of further disruptions to grain shipments from the Black Sea region sent futures up, with September and December soft red winter wheat contracts both reaching their daily limit of 45 cents.
The strength in wheat spilled over to corn and soybean markets, with December corn rising 13 cents to a contract high of $5.36 ½ and November soybeans jumping 28 ¼ cents to $12.66, also a contract high.
Russia and Ukraine account for more than a quarter of global wheat exports, making the conflict's impact on grain shipments significant. The White House is reportedly pressing environmental regulators to grant small oil refiners more exemptions from biofuel blending requirements, potentially affecting demand for biomass-based diesel and impacting farmers' revenue.