Russia provoked a sharp rise in price of wheat after hitting Reni's port - Bloomberg

Western analysts believe that Russia's impact on export capacity will affect wheat and then corn. Wheat prices have risen to the maximum in the last five months. The changes began after the Armed Forces fired the port on the Danube, attacking a vital export route for Ukrainian grain on the world markets. About it reports Bloomberg. Thus, on July 24, 2023, the wheat futures for wheat in Chicago showed an increase of 2. 6% to $ 7. 7725 per bushel. This is the highest level since February 21.

On the eve of futures, they jumped to the exchange limit. Corn with supplies in December increased by 0. 7%. Senior analyst Rabobank Group of Raw Materials Michael Magdovitz told reporters that Russia's impact on export capacity would have most affected wheat and then corn. He also noted that vegetable oils can still be transported on trucks and trains, but the grain is exported in this way - not profitable.

On the night of July 24, the Odesa region was attacked by the Armed Forces of Russia with the help of Iranian drones-Kamikadze Shahd. The attacks lasted for four hours and harmed the Danube's port infrastructure. The forces of air defense were shot down by three enemy UAVs. During the attack, the Russians managed to destroy with grain in the city of Rena and damage tanks for storing other cargoes. Six people were injured.

The blow occurred after Russia has announced its withdrawal from the Grain Agreement. It should be noted that Reni is one of our country's largest river ports. It is located on the Danube on the border with Romania. Local traders expanded their capacity there in response to Russia's naval blockade. We will remind, on July 24 there was information that Lithuania proposed to carry grain from Ukraine through the Baltic countries. As diplomats say, the Baltic Sea ports have great bandwidth.