Wheat futures in Chicago were on track for the biggest two-day advance in more than a month on concern Russia may interrupt Ukrainian grain exports in retaliation for a recent attack on the Kremlin.
(Bloomberg) — Wheat futures in Chicago were on track for the biggest two-day advance in more than a month on concern Russia may interrupt Ukrainian grain exports in retaliation for a recent attack on the Kremlin.
Ukraine’s president has dismissed Russian allegations that it was behind a drone assault on Vladimir Putin’s residence in Moscow. The incident is raising alarm that Russia may hit back by shutting the so-called safe corridor that allows Ukrainian crops to traverse the Black Sea to export markets.
Wheat rose as much as 1.2% on Thursday after jumping 5% a day earlier. Still, traders also are contending with bearish supply prospects in key growing regions, including Brazil, where farmers are preparing to harvest what’s expected to be a record corn crop.
“Black Sea tensions remain the massive wild card ahead of proposed talks in Moscow tomorrow, and the looming extension deadline coming up in two weeks,” StoneX analyst Matt Zeller said.
Meanwhile, US export sales of corn for the week ending in April 27 dropped to the lowest since 2017 amid Chinese cancellations. Corn and soybean futures were down less than 1%.
–With assistance from Kim Chipman and James Poole.
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