WEAT - Wheat futures soar before easing back as Russia hits Ukraine Danube grain port

2023-08-02 07:47:30 ET

Chicago wheat futures surged as much as 5% early Wednesday as Russian strikes damaged a Ukrainian port on the Danube river, reviving fears of disruption to Black Sea trade.

The Russian attack hit grain facilities at Izmail, one of Ukraine's biggest river terminals near the border with Romania, and highlights the risk of a further squeeze on Ukrainian exports after Russia pulled out of an agreement allowing grain shpments from Black Sea ports.

The most-active wheat contract ( W_1:COM ) on the Chicago Board of Trade jumped as much as 4.9% to $6.84/bushel, bouncing off two-week lows before paring gains to $6.605, up ~1.5%.

CBOT corn ( C_1:COM ) added 1.3% to $5.14/bushel, also recovering from a two-week low on Tuesday, and soybeans ( S_1:COM ) ticked down 0.1% at $13.40 1/2.

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

The wheat market also is awaiting an import tender called by Egypt for Wednesday following a string of tenders in recent days.

More analysis on grain futures:

Nukes On The Table As Ukraine Warns That War Is Returning To Russia

• News From Russia Could Be Very Bullish For The WEAT ETF Product
• CORN ETF: The Impact Of Russia-Ukraine Conflict, Drought And More

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