Wheat prices jumped nearly 5% higher as escalating attacks by Russia raise doubts that
Ukraine will be able to ship millions of tons of grain needed to boost global food supplies.
Wheat futures trading in Chicago rose 4.6% on news that Russia is shelling the seaport city of
Odessa in Ukraine, just days after the two countries agreed to a deal that would allow the
shipment of Ukrainian wheat to markets around the world.
Wheat prices had slumped almost 6% last week and closed at their lowest level since early
February after a deal to allow for the shipment of Ukrainian wheat was signed in Turkey.
But now, wheat prices are spiking again as Russia steps up its attack on Ukraine’s main port
city and shipping corridor.
Ukrainian officials say they’re still proceeding with plans to restart sea exports of wheat despite
the Russian attacks, which have drawn criticism from the United Nations and European Union.
The agreement between Russia and Ukraine was hoped to alleviate a global food crisis.
However, many Western officials are now skeptical that Russia will allow any wheat to leave
Ukrainian ports.
Should wheat exports resume, traders will be watching for signs of how quickly volumes pick-
up. Known as one of the world’s bread baskets, Ukraine ranks among the world’s top corn,
wheat and vegetable-oil exporters, and millions of tons of grain have been stuck inside its
borders since Russia invaded the country in February of this year.
In Chicago, prices for corn and soybeans also rose following the weekend attacks by Russia.
