StoneX Analyst: Rumors Russia Could Close Key Grain Corridor Are Traders’ Top Concern

Wheat futures rose 3.4% as traders refocused on the latest developments in the Russia-Ukraine war. According to Jin10, market participants viewed the World Agricultural Supply and Demand Estimates report as broadly neutral, shifting attention back to geopolitical risks. Rumors that Russia could close a key grain corridor were described as traders’ primary concern. StoneX analyst Arlan Suderman said in a report that the main situation remained that the wheat market had built in some risk premium ahead of the weekend due to the closure of the Kerch Strait. The report said Ukraine had escalated strikes on Russian energy facilities, followed by the possibility that key export infrastructure could be shut. Traders were also concerned about the risk that Russian retaliation could disrupt Ukraine’s wheat supply.