Reports of a large-scale operation by Ukraine’s Unmanned Systems Forces against Russian maritime logistics in the Sea of Azov served as a catalyst for the increase. According to Defense Express, over the course of 96 hours, Ukrainian drones carried out 35 strikes against Russian vessels, 33 of which were unique targets. The publication also notes that this represents approximately 27.5% of all vessels in the waters of the Sea of Azov as of July 7.
Traders fear that systematic strikes against Russian vessels could disrupt maritime logistics in the Sea of Azov and create additional risks for the export of Russian grain and other cargoes. It is precisely these concerns that have been one of the key factors driving up global wheat prices, as Russia and Ukraine remain the world’s largest exporters of this crop.
The market received additional support from expectations surrounding the release of a new report from the U.S. Department of Agriculture (USDA), which is expected to include updated estimates of planted acreage and grain stocks. Market participants expect a downward revision to the U.S. wheat supply forecast, which also supported demand for futures contracts.
At the same time, corn and soybeans remained relatively stable. Corn futures rose by only 0.39%, and soybean futures by 0.02%, as traders continue to assess weather conditions in the U.S. Midwest and the outlook for demand from China, according to ukragroconsult.
Unconfirmed reports are circulating in the global grain market about a possible temporary restriction by Russia on shipping through the Kerch Strait, the Sea of Azov, and the Azov-Don Canal due to the security situation. There has been no official confirmation of this information yet, but the rumors themselves have already caused concern among market participants.
