Chicago | Reuters — U.S. grain futures rallied on Tuesday as reports that Russian missiles crossed into Poland raised concerns about escalating political tensions, market analysts said.
A senior U.S. intelligence official said Russian missiles crossed into Poland, killing two people, the Associated Press reported. The Pentagon said it could not confirm reports that Russian missiles crossed into Poland near the Ukraine border.
“The Poland news, that got everything excited,” said Matt Wiegand, commodity broker for FuturesOne. “That’s what took us from one-two cents higher to 10 higher.”
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The most active wheat contract on the Chicago Board of Trade (CBOT) ended up 9-3/4 cents at $8.28-1/4 a bushel (all figures US$). Corn jumped 9-1/2 cents to close at $6.66-3/4 a bushel. Soybean futures also finished stronger, with the January contract rising 16-3/4 cents to $14.57-1/4 a bushel.
Grain traders said they were waiting for Russia to make a statement about the reports of missiles hitting Poland, a NATO country, which could increase tensions in the region.
“I’d expect a volatile oversight session into tomorrow, until everything gets more clear,” Wiegand said.
Signs of progress in talks to extend a wartime export deal for Ukrainian crops had earlier pressured grain futures. Bloomberg, citing people familiar with the discussions, reported that Moscow is likely to allow the corridor deal to be renewed after its initial duration expires on Nov. 19.
The Kremlin’s spokesman later said Russia would announce its decision “at the appropriate time”.
“We expect the corridor will, ultimately, be renewed,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia. “But, like most, we are wary of what kind of disruptive skulduggery Russia’s president might think of.”
— Reporting for Reuters by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore.
