Wheat price climbs nearly 6% after Russia withdraws from Black Sea pact

Chicago wheat futures jumped 6 per centand corn rose more than 2 per cent on Monday as Russia’s withdrawal from a Black Sea export agreement raised concerns over global supplies.

The most active wheat contract on the Chicago Board of Trade (CBOT) was up 6.1 per cent at $8.79-1/2 a bushel at 1221 GMT, having touched $8.93 for its highest since 14 October.

Wheat futures hit a record high of $13.64 a bushel in March.

Corn rose 2.4 per cent to $6.97-1/2 a bushel and soybeans added 0.6 per cent to $14.09-1/4 a bushel.

“This is an inflationary move, supporting prices of wheat and corn,” one Singapore-based trader said. “Prices have risen but further gains will depend on how the situation unfolds.” European markets also rose, with benchmark December milling wheat futures on Paris-based Euronext up 3.6 per cent at 349.50 euros ($346.70) a tonne after touching a two-week high of 353.25 euros a tonne.

Ukraine says power and water supplies across the country have been badly hit after Russia launched more than 50 missiles targeting critical facilities. In the capital Kyiv, 80 per cent of residents were without water, and about 350,000 apartments had no electricity, Mayor Vitaliy Klitschko said.