Dam hit in Ukraine, wheat prices rose

As the war between Russia and Ukraine continued, a large dam in the Kherson region captured by Moscow was attacked. The area was flooded while the dam was damaged. The dam rise and flood disaster caused wheat prices to skyrocket.

Ukraine’s Deputy Infrastructure Minister Mustafa Nayyem said on Twitter that more than 80 settlements and the city of Kherson are located in the flood zone that “could cause great loss of life.”

THE REGION IS FLOODED

Governor Oleksandr Prokudin stated in a video on his Telegram channel that eight villages and one district of Kherson were flooded in the early hours of the morning.

Although crops are not directly at risk from the flooding, wheat prices rose about 3 percent today due to supply problems.

Andrey Sizov, managing director of the agricultural products analysis company SovEcon, said in a tweet on the subject that the demolition of the dam “appears to be a major event with dire consequences.”

WHEAT PRICES RISE

Due to the risks posed by the flooding, wheat futures contracts traded on the Chicago Stock Market rose 3 percent to $236 per ton today. pink.

Wheat prices were also supported by tight supplies as production in Australia was forecast to decline in 2023/24 and the crop in China was affected by heavy rains.