Wheat retreated after a weekend that saw top exporter Russia confront an open threat to President Vladimir Putin’s rule in the country.
A rebellion by Yevgeny Prigozhin, leader of the Wagner mercenary group, took fighters to within hours of Moscow over the weekend, triggering the biggest crisis for Putin since he invaded Ukraine last year. A deal was struck to end the uprising, prompting Prigozhin to halt his advance toward the capital.
Wheat futures in Chicago fell as much as 1% to $7.3925 a bushel on Monday. Prices are still 25% higher this month as fighting between Russia and Ukraine escalated, weighing on the outlook for a deal that allows Ukraine to ship grain from Black Sea ports.
The rapid chain of events in Russia left the US and Europe trying to understand the political implications of a mutiny that opened cracks in Putin’s previously unquestioned authority in the Kremlin. The crisis unfolded amid bitter divisions in Russia over the faltering war in Ukraine, as a Ukrainian counteroffensive tries to push Russian forces out of occupied territories.
Russia is expected to be the world’s top wheat exporter this season and next, and any disruption to its shipments will have a significant impact. Moscow has increasingly flexed its powers in the global market following its invasion of Ukraine, including throttling Ukrainian exports from Black Sea ports.
--With assistance from Megan Durisin and Áine Quinn.
