Market News & Headlines >> Grain, Soy futures soar further as Russia Invades Ukraine

Grain and oilseed futures skyrocketed further Wednesday night into early Thursday morning after Russia launched an invasion of Ukraine, with some wheat and corn futures contracts rising by their daily price limits amid increased fears exports out of the Black Sea will be disrupted.

Russian President Vladimir Putin announced on state TV shortly before 10:00 p.m. CST that he had authorized a military operation in eastern Ukraine. Shortly after that explosions were reported in Ukraine’s capital of Kyiv.

Russia and Ukraine combined are projected to account for about 29% of world wheat exports in 2021/22 along with 19% of world corn exports and more than 78% of world sunflower oil exports. There is anticipation that buyers may rush to find alternative sources of supplies due to the increased risk to export shipments out of the Black Sea. 

As of 12:30 a.m., March and May corn futures were up their 35-cent daily price limits, while March through December 2022 SRW wheat and HRW wheat futures were all up their 50-cent daily price limits.  Nearby SRW wheat and HRW wheat futures reached new 9-1/2 year highs, as did nearby soybean futures, while nearby corn futures hit a 7-month plus high.

U.S. crude oil futures surged by more than $4 per barrel, with nearby futures reaching a new 7-1/2 year high. U.S. stock index futures have plunged in reaction to the news with nearby S&P 500 Index E-mini futures trading as much as 2.5% lower.