Russia attacks Danube Port near the Romanian border, further escalating conflict. President Zelensky sharply criticizes EU neighbors for denying Ukrainian exports by land.
Wheat quotations on Euronext and CBoT rose sharply on Monday. In Paris, September futures more than made up for Friday’s losses, jumping EUR0.17 to EUR0.26/kg, the highest level since late March. In Chicago, September wheat reached the 60 ct-up limit and closed at 757.50 ct/bu (251.5 EUR/t). This morning, the rally in Chicago continues with double-digit gains.
Russia also want to hit alternative transport routes
Prices were driven by Russian attacks on Ukrainian ports on the Danube. With this, Russia apparently also wants to hit Ukraine’s alternative transport routes and further restrict the country’s ability to export. What is explosive is that the targets are in close proximity to the border with NATO member Romania. The Reuters news agency reports that nearly 30 ships were unable to call at Ukraine’s Danube ports. It is unclear whether the ships can still be insured after the attacks.
The demand of neighboring states to extend export restrictions on agricultural products from Ukraine was sharply criticized by Ukrainian President Zelensky on Monday. The attitude of the eastern EU states is “absolutely unacceptable and frankly anti-European,” Zelensky said in his evening video address.
In the U.S., the spring wheat situation is surprisingly poor. 49% of the area was rated good and excellent in the Crop Progress Report. Analysts had expected 51%, unchanged from the previous week.
Agri-Food Canada lowered its 2023/24 wheat production forecast by 0.5 million t to 35.3 million t from 33.8 million t last year. Barley production was reduced by 300,000 t to 9.2 million t.
Wheat prices rose significantly on the cash market. Free South Oldenburg feed wheat for August delivery traded at EUR 248/t, up EUR 0.14 from Monday. In Hamburg, the bread wheat price rose by EUR 0.02 to EUR 0.27/kg.