Investing.com – In European morning trade on Monday (31st), it rose more than 6% after Russia suspended the implementation of the UN-sponsored Black Sea grain export agreement, which Russia said was due to Ukraine Attacks were carried out on Russian Black Sea Fleet ships and civilian vessels in the port of Sevastopol. Suspension of the agreement means Ukrainian grain exports are hampered.
Affected by this, as of writing, the price of the CME front-month wheat futures contract rose 6.37% to $881.80 per bushel, after an earlier increase of nearly 6%.
Since the agreement came into effect three months ago, Ukraine has exported more than 9 million tons of agricultural products and has greatly affected the overall balance of the global market. Last year, Russia and Ukraine accounted for nearly 30 percent of the world‘s total grain exports, but the Russian-Ukrainian war threatens the food supply of the world‘s poorest countries.
Since it was reported that various parties intend to reach an agreement on the export of grain from the Black Sea, world grain prices have dropped by nearly 30%. However, the suspension of the agreement could not only reverse wheat prices, but also affect corn, sunflowerseed and oil prices.
In a note to clients, Saxo Bank strategist Ole Hansen noted that the moratorium comes at an awkward time for the market: Commodity Futures Trading Commission data show that in recent weeks, fund managers have been more concerned about the decline in prices in both markets. The bets are getting bigger and bigger. Net shorts in Chicago wheat futures reached a 28-month high in the week ended Tuesday.
Meanwhile, it rose 2.74% to hit a two-week high of $698.38/bu; up 0.94%.
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Compilation: Liu Chuan