Analyst: Rumors that Russia is shutting down a key grain corridor are traders’ top focus

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Golden Finance reported that on July 11, amid expectations surrounding the World Agricultural Products Supply and Demand Outlook report that were generally seen as having a neutral impact on the market, traders’ attention has turned back to the latest developments in the Russia-Ukraine war. Rumors that Russia is closing a key food corridor are the traders’ primary focus. StoneX analyst Arlan Suderman said in a report, “The main situation remains that, with the Kerch Strait closed, there are some risk premia in the wheat market ahead of the weekend.” Earlier, Ukraine escalated strikes on Russia’s energy facilities, followed by concerns that key export infrastructure could be shut down. Traders are also concerned about the risk that Russia’s counteraction could disrupt Ukraine’s wheat supply. Wheat futures rose 3.4%.
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