Russia
From growing tensions between Ukraine and Russia to forecasts for hot and dry weather across the Midwest, grain prices have been on a volatile run. Analysts think the volatility could heat up again next week.
The Kremlin said there was no link between the attack and suspending the deal, which lets Ukraine export grain through the Black Sea. Instead, it occurred over a failure to ease rules for food and fertilizer exports.
According to USDA, Russian-speaking hackers are the likely suspects. The Office of Personnel Management and two organizations within the Department of Energy also were apparently targeted or breached.
China’s exports to Russia reached a record high in April, amounting to $9.6 billion.
Last week was full of both bullish and bearish news for the wheat market. Arlan Suderman of Stone X Group says there are still several things that could spark momentum in the wheat market.
The Ukraine Black Sea grain deal has been extended for two more months, one day before Russia could have quit the pact over obstacles to its grain and fertilizer exports.
A key reversal in wheat after a drone strike at the Kremlin pulls corn and soybeans higher as well. AgDay’s Michelle Rook chats with Ted Seifried about the headlines and the market response.
Kansas typically accounts for 25% of the nation’s winter wheat production, but ongoing drought is weighing on overall crop conditions. Farmers are now facing the possibility of increased abandonment this year.
Wheat and corn exports out of the Black Sea region are at risk again as Ukrainian officials say Russia is taking action to block inspections of ships under the Black Sea grain initiative.
The Kremlin said the outlook for the landmark U.N.-brokered Black Sea grain deal was not great as promises to remove obstacles to Russian exports of agricultural and fertilizer exports had not been fulfilled.