After attacks on Russia's Taman port, prices of grains-wheat have fallen.
Chicago wheat prices rose on Thursday following reports that 'Ukrainian drones' had attacked the port Taman, in Russia’s southern Krasnodar Region. The attack caused significant damage to an important grain export terminal. Corn was also supported by the hostilities, but under pressure from forecasts for crop-friendly weather conditions in the U.S. Midwest. Soybeans were up after falling to their lowest level in nearly three weeks earlier in trade.
By 12:00 pm CDT (1700 GMT), the most active wheat contract at the Chicago Board of Trade had risen 8-1/2 cents to $6.69-1/4 per bushel. Corn fell by 1/2 cent to $4.71-1/4 per bushel, while soybeans gained 1-1/2 cents at $11.94-1/4. Earlier in the session, bushels had fallen to their lowest level since July 10. Ukrainian drones targeted a grain terminal at Russia's Taman Port, located on the Kerch Strait connecting the Black Sea to the Sea of Azov. They caused "significant damage", according to an agricultural market source.
Demetra is one of Russia's biggest agricultural companies. The terminal has a 5 million-ton capacity. Demetra refused to comment. Sources said that drones also attacked an export facility for sunflower oil at the Port of Taman. One source, however, said that the damage was not substantial. In a recent note, Arlan Suderman said that "Russia's ability?to ship via the Sea?of Azov is effectively cut off. This forces them to redirect their?Black Sea port," The wheat market has seen the greatest strength as a result of this round of escalation. However, it is important to consider the impact that the escalation could have on other commodities. In overnight attacks on Thursday, Russia bombarded Ukraine with hundreds of drones and dozens of missiles. Ukraine's air force stated that the attack was primarily focused on Kyiv, Ukraine's capital city, and Lviv in the west of Ukraine near the border with Poland. Renee Hickman reports from Chicago. (Editing by Barbara Lewis; additional reporting by Sybille De La Hamaide, Naveen Thkral and Sybille de la Hamaide)
(source: Reuters)
