Wheat advanced from the lowest level since early June after Russia attacked a Ukrainian port on the Danube river, a further escalation of hostilities in the key Black Sea region.
Futures in Chicago rose as much as 1.3% after tumbling 6% over the past three sessions. Russia was targeting grain infrastructure, and storages and silos have suffered after the attack on Wednesday night, Oleh Kiper, head of the military administration of Odesa region, said on Telegram. He didn’t name the port.
Ukrainian river channels have become increasingly important to circumvent Moscow’s blockade of transporting grain via the Black Sea. Earlier this month, Russian drones targeted ports on the Danube river, including Izmail.
Wheat is still around 20% lower this year following bumper harvests in parts of the Northern Hemisphere. The US Department of Agriculture on Friday raised its estimate for Russian shipments in the 2023-24 season, and boosted its forecast for US wheat stocks by more than analysts had expected on average.
--With assistance from Volodymyr Verbyany.
