SINGAPORE- Chicago wheat hit a 14-year high on Thursday, adding more than a quarter to its value this week, as damage to Ukraine’s export infrastructure following Russia’s invasion raised concerns over long-term supply disruptions from the Black Sea region.
Corn rose 1.8 percent and soybeans were up 0.8 percent.
Russia and Ukraine account for about 29 percent of global wheat exports, 19 percent of corn exports and 80 percent of exports of sunflower oil, which competes with soyoil.
“We do wonder about what might happen with season ‘22 pricing,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia. “The world is full of possibility at present. And one of those possibilities is that, somehow, Ukraine and Russia harvests cannot be exported.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 3.3 percent at $10.76 a bushel, after climbing to its highest since March 2008 at $11.34 a bushel earlier in the session. The wheat market has rallied around 25 percent in just four sessions. – Reuters
