Summer wheat harvest in Chernihiv, Ukraine, on Thursday, August 10, 2017.
Vincent Mundy Bloomberg | Getty Images
Wheat futures reached new multi-year highs on Wednesday as the war between major exporters Russia and Ukraine continued to raise concerns about global commodity supply.
Commodity market developments come amid reports that Russian forces have surrounded two key cities in southern Ukraine.
Wheat futures reached $ 10.59 per bushel, up 7.62% at 9:39 a.m. ET. Wednesday’s highest mark since wheat traded at $ 11.19 on March 25, 2008.
For the second day in a row, wheat was at the “limit”, which means that it has reached the highest quantity that the price of a commodity can increase in one day.
“Look at what’s happening with wheat prices right now. We can talk about a big story with food inflation, “said Helima Croft, head of RBC Capital Markets’ global commodities strategy, to CNBC’s Worldwide Exchange on Wednesday morning.
Russia is the largest exporter of wheat, and Ukraine is among the four largest exporters of this commodity, according to JPMorgan. Of the 207 million tons of international wheat trade, 17% comes from Russia and 12% from Ukraine, according to Bank of America.
The price of corn, also a major agricultural product on both sides, reached 747.75 cents per bushel at its highest level on Wednesday. Corn futures are trading at 730.25 cents per bushel, up 0.6% at 9:39 a.m. ET.