Chicago | Reuters — Chicago Board of Trade corn futures jumped by their daily limit on Monday, while wheat futures spiked after hitting 13-1/2-year highs on Friday on concerns that Russia’s attack against Ukraine will continue to disrupt grain shipments from the Black Sea region.
Soy futures also rallied as the conflict limited vegetable oil exports.
Ukrainian ports will remain closed until Russia’s invasion ends, the head of Ukraine’s Maritime Administration said, adding that the port of Mariupol sustained damage from Russian shelling.
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Fears about infrastructure damage also fueled doubts over planting of Ukraine’s 2022 corn crop, grain traders said.
Russia invaded Ukraine on Feb. 24, calling its actions a “special operation.” Russian forces encountered resistance from Ukrainian troops and civilians on a fifth day of conflict on Monday.
Russia and Ukraine account for about 29 per cent of global wheat exports, 19 per cent of world corn supplies and 80 per cent of world sunflower oil exports.
Egypt’s state grains buyer, which relies heavily on Black Sea wheat, on Monday canceled a second international tender for wheat following the invasion.
Later, Egypt’s supply minister said the country is considering a gradual price increase for subsidized bread, without affecting the most vulnerable.
Egypt is expecting 180,000 tonnes of Ukrainian wheat before March 3 and another 180,000 tonnes in March, said Matt Zeller, analyst for broker StoneX.
“Both are in danger of force majeure,” Zeller said.
Most-active CBOT wheat futures ended up 74-1/4 cents at $9.34 a bushel, after temporarily rising by an expanded 75-cent daily trading limit (all figures US$). On Friday, the contract touched its highest since summer 2008.
Most-active corn futures climbed the daily 35-cent limit to end at $6.90-3/4 a bushel.
Corn’s trading limit will remain at 35 cents on Tuesday, and wheat’s limit will revert to 50 cents, CBOT owner CME Group said.
Soybeans ended up 52-1/4 cents at $16.36-3/4 a bushel, after rising last week to the highest since September 2012.
Consultancy Strategie Grains said Russia’s attack is expected to halt the processing and export of Ukrainian oilseed crops for at least a month.
Prospects for Black Sea grain flows to be halted for one to three months will attract new buying when prices break, said Rich Feltes, head of market insights for broker RJ O’Brien.
— Reporting for Reuters by Tom Polansek in Chicago and Michael Hogan in Hamburg; additional reporting by Naveen Thukral in Singapore.
