Russia Strikes Infrastructure Along Danube, “an Alternative [Grain] Export Route”

Reuters writers Olena Harmash and Tom Balmforth reported on Monday that, “Russia destroyed Ukrainian grain warehouses on the Danube River and wounded seven people in a drone attack on Monday, expanding the target area of an air campaign it launched last week after pulling out of the Black Sea grain deal, Kyiv said.

“The attacks last week mostly targeted the sea ports of Odesa but Monday’s pre-dawn strikes hit infrastructure along the Danube, an alternative export route that is vital for Kyiv after the demise of the year-old deal allowing safe exports of Ukrainian grain via the Black Sea.”

The Reuters article indicated that, “Global wheat and corn futures rose sharply on concern that Russia’s attacks and more fighting, including a drone strike on Moscow, could threaten grain exports and shipping.

“News website Reni-Odesa cited a local official as saying three grain warehouses had been destroyed in the Danube port city of Reni in an attack involving about 15 drones.

“Reni port, an important transport hub, looks across the Danube to NATO and European Union member Romania.”

Harmash and Balmforth added that,

Another European grain trader said: ‘It’s clearly an attack on additional Ukrainian grain export infrastructure. The great concern is whether it’s an attempt to completely stop the export by land.’

Anna Hirtenstein and Alistair MacDonald reported on Monday at The Wall Street Journal Online that, “Grain prices rose after Russia attacked a Ukrainian terminal on the Danube river, intensifying a campaign to hobble a key source of revenue for Kyiv.

“Wheat futures in Chicago rose more than 4.5% to $7.30 a bushel. Corn added 3%.

“‘It looks like Russia is really doubling down. This is definitely deteriorating,’ said Alexis Ellender, an analyst at Kpler with a focus on dry bulk commodities.”

Also Monday, Reuters writers Michael Hogan and Sybille de La Hamaide reported that, “Global wheat and corn futures rose sharply on Monday on concern that Russia’s attacks on Ukrainian port infrastructure and intensified fighting including drone attacks on Moscow could threaten Black Sea grain exports and shipping.

“Concern about dryness in U.S. grain belts stressing crops also supported futures on U.S. markets.”

And Reuters writer Naveen Thukral reported Monday that, “Chicago wheat and corn futures rose on Monday, as Russia’s attacks on Ukrainian port infrastructure and slowing flow of shipments from the Black Sea region heightened concerns over supply disruptions.

“Soybeans rose for the first time in three sessions.

“‘Cargo movement in the Black Sea region is getting restricted,’ said one Singapore-based trader. ‘Buyers are worried about supplies.'”

Bloomberg writers Aine Quinn, and Kateryna Choursina reported on Monday that, “Russia attacked one of Ukraine’s Danube river ports, ramping up the risks facing Kyiv’s last major grain export route and global food trade.

“The volume of crops transported along the river reached 2.2 million tons in May, an increase of almost 900,000 tons from the end of last year. Those shipments even overtook the exports via the Black Sea corridor in May due to inspections slowing down the departure of freighters,” the Bloomberg article said.