Chicago Stock Exchange-traded wheat futures rose to their daily limit reaching a 14-year high on Wednesday, as the war in Ukraine raised major concerns about grain supplies that will be available in the Black Sea region.
Corn futures hit their highest price since December 2012, when the market set an all-time high, before pulling back. Soybean oil retreated after hitting a record.
Markets were volatile as traders weighed how long the Russia-Ukraine conflict would last and whether it would jeopardize the planting of spring crops in the Northern Hemisphere.
“The battle between Russia and Ukraine has led to the closure of Black Sea ports and they will likely be closed for at least 60 to 90 days,” said Tomm Pfitzenmaier, an analyst at Summit Commodity Brokerage in Iowa.
“This forces the market not to export out of this region until spring (Northern Hemisphere) and leaves trade uncertain about what production in Ukraine will look like in 2022.”
Russia and Ukraine account for about 29% of global wheat exports, 19% of corn exports and 80% of sunflower oil exports, which competes with soybean oil.
On the Chicago Stock Exchange, wheat for May ended the session’s expanded limit of 75 cents at $10.59 a bushel, its highest level since March 2008. The market set an all-time high of $12.1450. in February 2008.
Corn futures for May peaked at $7.4775, the highest level since December 2012, before closing 0.75 cents lower at $7.25 a bushel.
May soybeans closed down 27 cents at $16.63 a bushel. Soybean oil settled up 77.02 cents a pound before closing 0.34 cents lower at 75.87 cents.
Source: CNN Brasil
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