CHICAGO: wheat rose past $10.3 per bushel, rebounding from the one-month low of $9.8 on April 1st as investors weighed on the potential impact of more sanctions by the US and Europe on grain supply.
The US said it could impose additional penalties this week, while EU states said they would hold Moscow accountable after reports of war crimes by Russian forces emerged over the weekend.
Further supply interruptions would add to the existing cutback that already took place because of the war. Ukraine exported 309 thousand tonnes of wheat in March of 2022, four times lower than that of February, delivered mainly through rail to Europe as Ukrainian port activity was mostly halted due to the invasion.
Previously, the Kremlin said it could limit agricultural supplies to “friendly states” amid scarce food supplies in the country and tight sanctions from the West. Before the invasion, Ukraine and Russia accounted for nearly 30% of global wheat exports.