Asian mills looking for alternatives to Ukrainian wheat

Asian mills that bought more than 1 million metric tons of wheat from the Black Sea shipping region in the coming months will look for alternatives after attacks on Ukrainian ports, traders and analysts said.

The attacks followed the collapse of an agreement that allowed the safe transport of grain exports through the Black Sea from Ukrainian ports, raising concerns about longer-term supplies.

Important Black Sea supply constraints added further blurring amid expectations that the El Niño climate phenomenon could threaten crops across Asia, exacerbating fears of inflated food prices.

Wheat futures on the Chicago Stock Exchange jumped more than two per cent to a three-week high today, with prices supported following attacks on Ukrainian ports that caused infrastructure damage.

An international trader told Reuters: “Traders and mills will look for alternative sources of supply. They are likely to look for this in Europe and shipments from other exporters in the Black Sea region such as Romania and Bulgaria. Australia continues to have grudges for sale from its crop last year. “

Ukrainian local authorities said Russian strikes continued in Ukraine’s port areas today after Moscow issued a warning that vessels bound for Ukraine’s Black Sea ports could be considered military targets.

The attack on the port of Chornomorsk in southern Ukraine damaged the grain export infrastructure, as well as the destruction of thousands of tons of grain stored.