Wheat futures reach highest levels since 2008 as Russia invasion advances
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A field in the Kyiv region of Ukraine, near Hrebeni village. Ears full of wheat can be seen July 17, 2020.
Valentyn Ogirenko | Reuters
On Tuesday, the price of wheat rose to its highest level in over a decade. This was due to traders worried about disruptions in global supply as Russia invaded Ukraine.
A group of Russian military vehicles is approaching Ukraine’s capital of KyivSatellite imagery from Monday was indicated.
Wheat futures reached 984 cents per bushel at the highs of Tuesday’s session — the highest since April 4, 2008, when wheat traded as high as 985.5 cents per bushel.
JPMorgan reports that Russia is the world’s largest wheat exporter, while Ukraine ranks fourth among four major exporters.
According to Bank of America, 17% of international wheat trade worth 207 million tons comes from Russia, and 12% from Ukraine.
Marko Kolanovic, JPMorgan’s Marko Kolanovic stated in a February 14 note that wheat and corn were the most vulnerable agricultural markets to any possible escalation of tensions.
Corn futuresOn Tuesday, they also reached a record high at 722 cents per barrel. This is their highest point since May.
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