Content ID

334584

GRAINS-Wheat surges, corn firms on Black Sea supply worries

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Concerns over Russia-Ukraine war supports wheat prices

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Corn rises on expectations of lower crops in U.S., EU

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Soybeans up as Chinese buyers return to work from holiday

(Updates paragraph 1, updates with closing prices)

By P.J. Huffstutter

CHICAGO, Oct 10 (Reuters) - Chicago wheat and corn futures on Monday surged to months-high prices amid growing concerns that an escalation in the fighting between Russia and Ukraine could further disrupt grain shipments from Black Sea ports.

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.

"For grains today, it's a Putin rally," Don Roose, president of Iowa-based U.S. Commodities. "The fear really escalated in the markets that he's just not going to agree to a grain export corridor going forward, given the military action."

The rally in wheat also gave a boost to corn futures, which also rose on expectations of reduced harvest forecasts in the United States and Europe.

While soybean futures firmed in mid-session trading, as traders jockeyed to adjust their positions ahead of the U.S. Agriculture Department's monthly World Agricultural Supply and Demand Estimates and Crop Production reports on Wednesday.

Traders say the markets are worried that USDA may raise soybean yield or acres in the report, as they have in past years, Roose said. And uncertainty about demand from China, the world's largest buyer of soybeans, also kept the gains in check, traders said.

"Wednesday is going to be a big report," agreed Dan Basse, president of consultancy AgResource in Chicago.

Chicago Board of Trade most-active wheat futures settled up 57-3/4 cents at $9.38 a bushel. Earlier in the session, it hit the highest price since July 11.

Corn settled up 15 cents at $6.98-1/4 a bushel, while soybeans rose 7 cents to settle at $13.74 a bushel. (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore, editing by David Evans and Alistair Bell)

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