International wheat prices jumped on Monday after Russia’s weekend strike at the port of Odesa raised concern over whether agreements signed separately by Russia and Ukraine with the UN and Turkey to resume Ukrainian wheat exports of grain can finally be implemented and reduce the pressure on the food supply internationally, as reported by the Bloomberg agency.
Ukrainian officials say they are continuing to work to resume grain exports by sea despite the attack, which has been strongly condemned by the US, European Union, Britain and the UN.
Wheat futures in Chicago were thus earlier strengthened by up to 4.6%, while in London at 12.18 Greek time they were up 3.6%.
Prices had fallen about 6% since the deal was signed in Istanbul on Friday.
The Russians stressed that they had hit “military infrastructure”, while Ukrainian officials said that no grain warehouses were hit in the attack.
The three ports from which exports are expected to resume are those of Odessa, Khornomorsk and Pivdeni.
Should Ukrainian wheat exports eventually resume, traders will be watching to see how quickly volumes grow.
Although a small portion of Ukrainian wheat has been rerouted via land and rail export routes, major customers are looking elsewhere to cover losses, putting upward pressure on prices.
In Chicago, both corn and soybean prices are moving up.
Source: Capital
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