Wheat climbs to 14-year high as Russia's invasion of Ukraine hits supplies

Chicago wheat jumped almost 3 per cent on Wednesday as the market continued its bull run, climbing to the highest since 2008 on concerns over prolonged supply disruptions following Russia's invasion of its rival grain exporter Ukraine.

Corn eased after climbing to its highest since May and soybeans fell for the first time in three sessions.

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 2.8 per cent to $10.11-1/4 by 0145 GMT, having earlier hit its highest since March 2008 at $10.23 a bushel.

Read | India to ship record wheat as Ukraine crisis upends trade flows

Corn slid 0.4 per cent to $7.22-3/4 a bushel, after rising to its highest since May earlier in the session, while soybeans gave up 0.6 per cent to $16.79-3/4 a bushel.

Global wheat, corn and sunflower oil importers are likely to seek alternative shipments as the conflict between key suppliers Russia and Ukraine curbs supplies.

Buyers of animal feed corn have rushed to book European Union supplies to replace Ukrainian exports blocked by Russia's invasion, traders said, but with the bloc also sensitive to loss of Ukrainian supply they may soon have to look elsewhere.

Also Read | How Ukraine crisis will impact wheat prices

Together, Russia and Ukraine account for about 29 per cent of global wheat exports, 19 per cent of corn exports and 80 per cent of exports of sunflower oil, which competes with soyoil.

The world's three biggest container lines on Tuesday suspended cargo shipments to and from Russia, in another blow to trade with the country.

Investors worry the conflict may prevent farmers in Russia and Ukraine from planting crops like corn this spring.

Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Tuesday, traders said.

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