Wheat futures traded limit up for the fifth day in a row on Monday, making new record highs.- The commodity futures have surged nearly 50% since Russia invaded Ukraine, which is often called the bread basket of Europe.
- Ukraine is responsible for more than 10% of global wheat production.
$4 traded limit up for the fifth day in a row on Monday and made new record highs as $4
The surge in wheat prices, with the Chicago SRW Wheat futures jumping 7% to $12.94 per bushel, comes as Ukraine's farm season will no doubt be disrupted by the ongoing attack by Russia. In futures
Ukraine is responsible for more than 10% of global wheat production, making it the fifth largest wheat producer in the world. Meanwhile, Russia is responsible for more than 20% of global wheat production, and sanctions from western countries will complicate the country's ability to sell one of its biggest exports.
Since $4 wheat futures have soared nearly 50%, leading a broad surge in commodity prices as investors fret about more supply chain disruptions that are poised to be extended from the COVID-19 pandemic.
WTI Crude Oil $4 hitting $130 per barrel, representing its highest level since 2008.
Meanwhile, nickel prices $4 due to worries about shortages from Russia, which is a major supplier of the commodity. Nickel prices in London surged more than 60% to $46,000 per tonne.
The surge in
While it will take time for rising wheat prices to hit the supply chain, and barring a sudden reversal, a knock-on effect will be rising prices for key food staples like bread and pasta, further exacerbating high inflation.