War concerns in commodities

Russia's attacks on civilian targets in many Ukrainian cities have increased concerns in the international community, while also causing sharp upward movements in the commodity market. The explosion of the Kerch Bridge, Russian President Vladimir Putin's signature project, in Crimea, and the subsequent missile attacks by Russia on many Ukrainian cities are causing balances in the energy and food markets to be shaken again. The Kiev administration's announcement that it would halt electricity exports following Russia's attacks on its energy infrastructure increased the European benchmark natural gas price by 20 percent on Monday. Although the benchmark natural gas price fell later on Monday and closed the day in negative territory, it was once again seen how much intraday volatility the market can experience under war conditions. The escalation of the war also threatens the Ukraine grain corridor agreement, while wheat prices rose to a three-month high. Wheat futures in Chicago rose as much as 7.9 percent on Monday. Corn futures rose as much as 3.4 percent, reaching their highest closing price since June 21. The Biden administration has pledged to provide Ukraine with an air defense system in response to Putin’s announcement that they could launch more missile attacks. The White House said in a statement about the meeting between US President Joe Biden and Ukrainian President Volodymyr Zelenskiy: “President Biden pledged to provide Ukraine with the support it needs, including advanced air defense systems.”