Wheat costs skyrocket to highest since 2008, trade on possible Russia supply hit
Key takeaways:
- The cost of wheat increased to its most elevated levels in almost a decade as Russia's attack on Ukraine rose.
- Wheat futures got 984 cents per bushel at the highs of the session.
- The item traded "limit up."
- Russia is the biggest exporter of wheat, and Ukraine is among the four most prominent exporters of the commodity, according to JPMorgan.
The cost of wheat grew due to the war:
The cost of wheat on Tuesday increased to its highest levels in almost a decade, with dealers concerned regarding international supply trouble as Russia's invasion of Ukraine grew.
A convoy of Russian military cars is coming to Ukraine's capital of Kyiv, satellite imagery taken Monday showed.
Wheat futures advanced 5.35% to 984 cents per bushel at 11:30 a.m. ET, at the highs of Tuesday's session. That marks the most increased cost since April 4, 2008, when wheat sold as high as 985.5 cents per bushel.
The grain traded "limit up," which directs to the most increased commodity cost to grow in a single day.
Russia is the biggest exporter of wheat, and Ukraine is among the four biggest exporters of the item, according to JPMorgan.
Of the 207 million tons global wheat trade, 17% arrives from Russia, and 12% comes from Ukraine, according to Bank of America.
"Wheat and corn are the most exposed agricultural markets to any possible escalation in tensions," JPMorgan's Marko Kolanovic stated in a February 14 message.
Corn futures on Tuesday also previously traded up 5.07% at 725.75 cents per bushel, their most elevated level since May. Trading of corn futures also stopped.