(Dec 23): Wheat prices hovered near a one-week high as fresh tensions between Russia and Ukraine raised the risk of supply disruptions from the Black Sea region.
A Russian drone strike late on Monday damaged port facilities and a civilian vessel in Odesa, Ukraine’s regional governor Oleh Kiper said on Telegram.
Wheat futures in Chicago remained largely steady after surging as much as 1.7% a day earlier.
The strikes have led to the return of risk premium in prices, which had faded earlier on hopes that a US-backed peace effort would end the Ukraine war and the threat it poses to grain exports from two major shippers, CRM AgriCommodities said in a note.
US Special Envoy Steve Witkoff said this week that President Donald Trump’s officials held meetings with Ukrainian and European counterparts in Florida as part of efforts to end Russia’s invasion. Topics discussed included further developing the existing 20-point peace blueprint, a US security guarantee framework and the economic development plan for Ukraine, he said.
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Russia, the top exporter of wheat and a major producer of the grain, may see lower output next year, adding to the support for prices.
In other parts of the world, US has launched a naval blockade to prevent sanctioned oil tankers from entering or leaving Venezuela, ratcheting up geopolitical tensions.
Prices:
- Chicago wheat falls 0.1% to US$5.1525 per bushel at 2.04pm in Singapore
- Corn and soybeans little changed
