Wheat rallies to 3-month high as Russia's attacks on Ukraine raise risks to Black Sea exports

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Wheat rallies to 3-month high as Russia's attacks on Ukraine raise risks to Black Sea exports
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Wheat rallied as Russia’s fresh barrage of attacks in Ukraine threatened exports of the grain through the Black Sea. Russian President Putin said his country’s attacks across Ukraine were made in response to Ukraine’s attack on a bridge to Crimea and more.

Wheat rallied Monday, with futures prices for the commodity settling at their highest since late June, as Russia’s fresh barrage of attacks in Ukraine threatened exports of the grain through the Black Sea.

“Uncertainty about the future availability of existing Russian and Ukrainian wheat supplies is driving prices right now, and headlines are feeding the uncertainty,” said Sal Gilbertie, president and chief investment officer at Teucrium Trading. — Sal Gilbertie, Teucrium Trading In Monday dealings, the most-active December wheat futures contract WZ22, +6.11% rose 57 3/4 cents, or 6.6%, to settle at $9.38 a bushel in Chicago. Prices marked their highest settlement since June 23, according to Dow Jones Market Data.

On Saturday, however, an explosion damaged Russia’s Kerch Strait Bridge, which connects Russia to occupied Crimea and has served as a conduit for Russia troops in southeast Ukraine. Added to that, “Australia has seen heavy rainfall and flooding over parts of New South Wales, including some wheat growing areas,” said Newsom. “This could lower what was expected to be near record production potential.”

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