---
title: "Wheat extends surge as Russia threatens ships headed to Ukraine"
description: "Wheat kept rising — following the biggest daily surge in a decade on Wednesday — as Russian threats against ships sailing to Ukrainian ports escalated a conflict over grain exports from the Black Sea region."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-07-20-wheat-extends-surge-as-russia-threatens-ships-headed-to-ukraine/"
published: "2023-07-20T05:58:16"
lang: "en-ZA"
word_count: 356
---

# Wheat extends surge as Russia threatens ships headed to Ukraine

> Wheat kept rising — following the biggest daily surge in a decade on Wednesday — as Russian threats against ships sailing to Ukrainian ports escalated a conflict over grain exports from the Black Sea region.

By Bloomberg · Published 20 July 2023, 07:58 SAST

## Key points
- After Russia blocked the Black Sea grain deal, Ukraine's exports through the corridor have been threatened, with President Zelensky calling for military protection of ports and increased diplomatic contacts to keep its crops flowing abroad.
- Futures in Chicago rose 1.3% after a 9% increase in the previous session
- Russia warned vessels heading to Ukrainian ports would be considered potential carriers of military cargo
- Ukrainian President Volodymyr Zelensky ordered military to boost port defences and diplomats to step up contacts with partners
- Biden administration announced $1.3-billion in new military assistance for Ukraine, including four National Advanced Surface-to-Air Missile Systems

## Content

Futures in Chicago rose 1.3% after advancing almost 9% at one point in the previous session, the biggest increase since 2012. Russia’s Ministry of Defence [warned](https://www.bloomberg.com/news/articles/2023-07-19/ukraine-recap-russia-fires-barrage-of-missiles-at-odesa-region) that all vessels in the Black Sea heading to Ukrainian ports would be considered potential carriers of military cargo starting on Thursday.

The warning came just days after Russia ended the Black Sea grain deal that kept Ukrainian exports flowing through the corridor. Ukraine’s Black Sea ports are a vital artery for its sales abroad — historically accounting for the bulk of shipments — and the harvest season is now under way. The corridor’s closure could slow the next crop getting to market.

Reduced availability of grain from Ukraine means less export availability during the crucial Black Sea harvest period, said Dennis Voznesenski, a senior agriculture analyst at Rabobank Group in Sydney.

“In the long term, it means more grain stockpiled in Ukraine, which leads to lower Ukrainian prices, lower Ukrainian farm margins and lower planting,” he said.

Ukrainian President Volodymyr Zelensky had said earlier that his country was studying options to get the grain corridor open again, including convoys for ships, according to the Interfax news service.

Zelensky also said Russia had intentionally attacked grain-deal infrastructure overnight as he ordered his military to boost port defences and diplomats to step up contacts with partners to continue exports of crops.

In Washington, National Security Council spokesman Adam Hodge said “we have information that the Russian military may expand their targeting of Ukrainian grain facilities to include attacks against civilian shipping in the Black Sea”.

The Biden administration announced $1.3-billion in new military assistance for Ukraine, although the weapons still have to be put under contract and produced so they won’t arrive as soon as materiel drawn from Pentagon stockpiles.

The latest package includes four National Advanced Surface-to-Air Missile Systems, mine-clearing equipment and Phoenix Ghost and Switchblade drones.

Russian President Vladimir Putin will be participating in next month’s summit of BRICS leaders in South Africa online rather than in person, resolving a potential dilemma for that country’s authorities over whether to execute an International Criminal Court warrant for his arrest. **DM**