Wheat prices surge after Ukrainian ports shelling!

According to comments by Ukraine's agriculture minister Solskyi, Russia is trying to hinder Ukraine's wheat exports by alternative routes to the sea route. According to Bloomberg, Ukraine's grain shipments have fallen by 30 per cent since Russia decided not to renew a grain deal allowing grain exports from Ukrainian ports.

• According to the agency's anonymous sources, Russian drones overnight attacked Reni, one of Ukraine's largest river ports. The facility has recently increased capacity to address the Black Sea freight crisis.The Ukrainian military command South confirmed that a grain hangar was vandalised.
• The aim of the shelling was obviously to impede exports across the Danube, which could disrupt global trade routes and hit Kiev's main export route. Markets fear that similar attacks could be repeated and paralyse Ukrainian wheat exports completely.
• According to initial reports, the attack stopped nearly 30 cargo ships within the Izmail transshipment terminal. The Odessa seaport was also attacked.
• At the same time, the EU's crop monitoring agency has again downgraded forecasts for this year's harvests of cereals, oilseeds and sugar beet, among others, citing dry and hot weather.
• In its monthly forecasts, the MARS service cut its forecast for the yield of soft wheat, the most widely grown crop in the EU, to 5.80 tonnes per hectare, down from 5.92 forecast earlier. 

Rising grain prices put a question mark over the trajectory of food price inflation.The prospect of supply problems and disruptions in supply chains are driving wheat prices. Contracts on the Chicago Stock Exchange are raging today, with increases of almost 9%.

WHEAT futures based on the commodity markets are up more than 9% today and have broken through the 50-week exponential moving average (shown in light blue on the curve). Source: xStation 5