Wheat Gains as Russia Port Briefly Shut and India May Scrap Duty

Wheat futures rose more than 3%, paring a weekly loss, as a major Russian grain-shipping hub was temporarily closed and India considers scrapping its import tax.

(Bloomberg) — Wheat futures rose more than 3%, paring a weekly loss, as a major Russian grain-shipping hub was temporarily closed and India considers scrapping its import tax.

Traffic from the Novorossiysk port was halted for several hours on Friday after a Ukrainian drone attack on a naval vessel. The overnight assault was repelled without damage to port facilities, according to the Russian Defense Ministry.

Read more: Ukraine Attack on Russian Ship Disrupts Commodity-Export Hub.

Although the closure was short-lived, it adds to uncertainty about Black Sea trade flows as the war escalates in the midst of this year’s harvests. Russia pulled out of a deal last month that had established a safe corridor for grain shipments from three Ukrainian ports.

In addition, India — the world’s second-biggest wheat producer — is considering abolishing an import tax so that buying grain from overseas becomes more attractive. The last time the nation imported a significant amount of wheat was in the 2017-18 season.

Read more: India Considers Scrapping Wheat Import Tax to Cool Prices.

Chicago futures climbed as much as 4.3%, before paring the advance. Paris wheat also rose to trade steady on the week.

–With assistance from Ben Sharples, Pratik Parija and Siddhartha Singh.

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