Ukrainian Drone Strikes on Russian Terminals Boost Wheat Prices
Euronext wheat prices rose after Ukrainian drone strikes disabled two major Russian grain export terminals in Novorossiysk, sparking fears of Black Sea shipment disruptions.
Wheat prices on the Euronext exchange climbed on Wednesday, August 12, after the Cabinet of Ministers of Ukraine executed drone strikes against two of the largest grain export terminals in Novorossiysk, Russia. The attacks forced the terminals to suspend operations, raising immediate concerns regarding the stability of Russian wheat exports and the continuity of shipments through the Black Sea.
December wheat futures increased 2.2 percent to €232.50 per metric ton, while September wheat rose 2.9 percent. Market analysts indicate that the price surge was driven by traders engaging in short-covering to hedge against geopolitical risks. This upward movement was further supported by the August world supply-and-demand report released by the United States Department of Agriculture.
Despite the gains, the price increase was tempered by high existing long positions held by investment funds and weak export demand across Western Europe.
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