Wheat, corn prices climb as Russia withdraws from Black Sea export agreement | Inquirer Business

Wheat, corn prices climb as Russia withdraws from Black Sea export agreement

/ 09:44 AM October 31, 2022
Winter wheat

A combine harvester harvests winter wheat in Corn, Oklahoma, U.S., June 12, 2019. REUTERS/Nick Oxford/File photo

SINGAPORE  -Chicago wheat futures jumped more than 5 percent on Monday and corn rose over 2 percent as Russia’s withdrawal from a Black Sea export agreement raised concerns over global grain supplies.

The most-active wheat contract on the Chicago Board of Trade (CBOT) jumped 5.5 percent to $8.75 a bushel as of 0102 GMT, after earlier hitting a high of $8.93 a bushel.

ADVERTISEMENT

Corn rose 2.2 percent to $6.96-1/4 a bushel and soybeans added 1 percent to $14.13-1/2 a bushel.

“(The market) is going to be overwhelmed in early trade today by Russia suspending its participation in the Black Sea grain corridor during the weekend,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.

FEATURED STORIES

“Our view has been that wheat futures were adding little premium to prices for the risk that the corridor would close.”

Moscow suspended its participation in the Black Sea deal on Saturday in response to what it called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.

Kyiv said Russia was making an excuse for a prepared exit from the accord and Washington said it was weaponising food.

The United Nations, Turkey and Ukraine said they are pressing ahead on the grains export deal with a transit plan in place for 16 ships on Monday.

Grain markets have been sensitive to developments in Moscow’s eight-month-old invasion of Ukraine as the two countries are among the world’s largest suppliers of wheat.

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

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Agreement, Black Sea, corn, wheat prices
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.