COM - Wheat futures jump by daily limit after Russia hits Danube grain facilities
2023-07-24 16:56:06 ET
U.S. wheat futures surged by their daily maximum Monday on the Chicago Board of Trade after Russia attacked Ukrainian ports and grain infrastructure on the Danube River, expanding its air campaign that began last week after it pulled out of the Black Sea grain deal.
Three warehouses with grain reportedly were destroyed in the port of Reni by Russian drones, the first such attack on Danube sites; Russia has been pounding Ukrainian food exporting ports almost daily, including Ukraine's main grain export port of Odesa.
CBOT wheat ( W_1:COM ) for September delivery settled +8.6% to $7.57 1/2 per bushel, quickly hitting the $0.60/bushel limit-up as traders viewed the newest round of fighting as a clear sign that reviving the Black Sea grain initiative is off the table.
Corn and soybeans followed wheat futures higher, with outlooks for hot weather in the U.S. crop belt adding support, sending corn ( C_1:COM ) for December delivery +6.2% to $5.69 1/4 per bushel and November soybeans ( S_1:COM ) +1.6% to $14.23 1/2 per bushel.
ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )
In other news, the European Union's crop monitoring service further reduced its crop yield forecasts for this year's harvest, citing dry and hot weather.
More analysis on U.S. crop futures:
- News From Russia Could Be Very Bullish For The WEAT ETF Product
- CORN ETF: The Impact of Ukraine-Russia Conflict, Drought And More
- DBA As Choices In Agricultural ETF Products Decline
For further details see:
Wheat futures jump by daily limit after Russia hits Danube grain facilities