COM - Wheat futures jump as Ukraine dam destruction amps up supply worries

2023-06-06 08:35:28 ET

U.S. wheat futures in Chicago surged as much as 3% Tuesday, as fears of an escalation in the Ukraine war are triggered by the destruction of a major dam and damage to a key ammonia pipeline.

Torrents of water of water are flowing through a hole in the Russian-controlled Nova Kakhovka dam, which holds as much water as the Great Salt Lake in Utah, threatening hundreds of thousands of people with imminent flooding.

Separately, Ukraine said an ammonia pipeline was damaged by Russian shelling in the Kharkiv region; Russia regards the pipeline as a key in talks on keeping Ukraine shipments flowing through the Black Sea.

The incidents also have added to supply worries in wheat as dry weather occupies part of Europe and Russia, which had helped lift U.S. and European futures on Monday.

Recently, the most-active wheat contract ( W_1:COM ) on the Chicago Board of Trade was +2.8% at $6.41 1/4 per bushel after touching its highest price since May 17, while corn ( C_1:COM ) +1% at $6.03 1/2 per bushel and soybeans ( S_1:COM ) +0.3% at $13.54 1/2 per bushel.

ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )

After Monday's market close, the U.S. Department of Agriculture's weekly crop progress report rated 64% of the U.S. corn crop and 62% of the soybean crop in good-to-excellent condition.

More on wheat:

• U.S. wheat futures tumble near two-and-a-half-year lows
• WEAT: A Critical Sentiment Barometer Is Very Bullish
• WEAT: Positive Catalysts Percolating, Wait For A Buy

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