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334570

Wheat jumps over 4% on Black Sea supply concerns, corn firm

By Michael Hogan

HAMBURG, Oct 10 (Reuters) - Chicago wheat rose over 4% on Monday on concerns a flare-up in the Russia-Ukraine conflict could create new threats to grain shipments from the Black Sea region.

Corn rose on expectations of smaller crops in the U.S. and Europe. Soybeans hopes of more Chinese demand underpinned soybeans.

Chicago Board of Trade most-active wheat jumped 4.8% to $9.22-1/2 a bushel at 1115 GMT. Corn was up 1.5% at $6.94 a bushel, soybeans rose 1.9% to 13.94-1/4 a bushel.

"Wheat is being pushed up by the intensified fighting between Russia and Ukraine and concern about whether this will cause interruption in some way to seaborne grain exports from the Black Sea, especially whether Ukraine's safe shipment channel for grain exports will continue," said Matt Ammermann, StoneX commodity risk manager.

"Regardless of whether actual disruption of shipments likely or not, a risk premium is being added to prices today as if Black Sea shipments are disrupted, demand could be switched to other regions like the United States and EU."

Russia struck Ukrainian cities on Monday in apparent revenge after President Vladimir Putin declared an explosion on the bridge to Crimea to be a terrorist attack.

"Corn is also seeing some support from the Black Sea conflict concerns along with expectations of reduced harvest forecasts in the U.S. and Europe," Ammermann said.

Analysts expect the U.S. Department of Agriculture to cut its U.S. corn harvest forecast.

"Soybeans are seeing support from hopes Chinese buying will resume as the country returns to work after its holiday week and with high hog prices in China is likely to help demand," he said.

"There is also still some bargain-buying after recent soybean price falls. But I think this is based on hopes of increased demand as the actual current U.S. soybean export programme is looking horribly low and is below last year's rate when shipments were cut by hurricane damage." (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by David Evans)

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