Wheat futures jumped Wednesday morning after Russia's defense ministry released a memo on Telegram indicating all vessels sailing to Ukraine ports in the waters of the Black Sea will be "regarded as potential carriers of military cargo" beginning on Thursday.
"In connection with the cessation of the functioning of the Black Sea Grain Initiative and the сlosing of the maritime humanitarian corridor, from 00.00 Moscow time on 20 July 2023, all vessels sailing in the waters of the Black Sea to Ukrainian ports will be regarded as potential carriers of military cargo," the defense ministry said.
The ministry continued:
Accordingly, the countries of such vessels will be considered to be involved in the Ukrainian conflict on the side of the Kiev regime.
In addition, a number of sea areas in the north-western and south-eastern parts of the international waters of the Black Sea have been declared temporarily dangerous for navigation. Corresponding information warnings on the withdrawal of safety guarantees to mariners have been issued in accordance with the established procedure.
Following the defense ministry's new warning, coupled with the termination of the Black Sea Grain deal earlier this week, wheat futures in Chicago soared 9% on Wednesday morning in Chicago.
Terminating the grain deal will only bring higher food costs and shortages for countries that import agricultural products from Ukraine.