(*14*)Wheat futures reached new multiyear highs Wednesday, as battle between main exporters Russia and Ukraine continued to boost considerations in regards to the world provide of the commodity.
(*14*)The strikes in the commodity market come amid studies that Russian forces have surrounded two key cities in southern Ukraine.
(*14*)Wheat futures hit $10.59 per bushel, up 7.62%, as of 9:39 a.m. ET. Wednesday’s worth marks the highest degree since wheat traded at $11.19 on March 25, 2008.
(*14*)For a second consecutive day, wheat was at “limit up,” that means it reached the highest quantity the worth of a commodity is allowed to extend in a single day.
(*14*)”Look at what’s happening to wheat prices right now. We could be talking about a major food inflation story,” Helima Croft, RBC Capital Markets’ head of world commodity technique, instructed CNBC’s “Worldwide Exchange” on Wednesday morning.
(*14*)Russia is the most important exporter of wheat and Ukraine is among the many 4 largest exporters of the commodity, in accordance with JPMorgan. Of the 207 million ton worldwide wheat trade, 17% comes from Russia and 12% comes from Ukraine, in accordance with Financial institution of America.
(*14*)The value of corn, additionally a serious agricultural product of the 2 nations, hit 747.75 cents per bushel at its highs of Wednesday. Corn futures traded at 730.25 cents per bushel, up 0.6%, as of 9:39 a.m. ET.