Global wheat prices climb nearly 6pc

Chicago wheat futures jumped almost 6 per cent on Monday and corn rose more than 2 per cent as Russia's withdrawal from a Black Sea export agreement raised concerns over global supplies.

The most active wheat contract on the Chicago Board of Trade (CBOT) was up 5.7 per cent at $8.77-3/4 a bushel at 0816 GMT, after reaching $8.93 earlier in the day for its highest since October 14.

Wheat futures hit a record high of $13.64 a bushel in March.

Corn rose 2.6 per cent to $6.98-1/4 a bushel and soybeans added 0.6 per cent to $14.09-1/4 a bushel.

"This is an inflationary move, supporting prices of wheat and corn," one Singapore-based trader said. "Prices have risen but further gains will depend on how the situation unfolds."

READ FULL STORY ONLINE

Moscow suspended its participation in the Black Sea deal on Saturday in response to what it called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.

Kyiv said Russia was making an excuse for a prepared exit from the accord and Washington said it was weaponising food.

Hundreds of thousands of tonnes of wheat booked for delivery to Africa and the Middle East are at risk after Russia's withdrawal, with Ukrainian corn exports to Europe also expected to be hit, two other Singapore-based traders said.

The United Nations, Turkey and Ukraine said they are pressing ahead on the grains export deal with a transit plan in place for 16 ships on Monday.

Under the UN-brokered grains deal, a Joint Coordination Centre (JCC) comprising UN, Turkish, Russian and Ukrainian officials agree on the movement of ships and inspects the vessels. More than 9.5 million tonnes of corn, wheat, sunflower products, barley, rapeseed and soy have been exported from the Black Sea since July.

Grain markets have been sensitive to developments in Moscow's eight-month-old invasion of Ukraine because the two countries are among the world's largest suppliers of wheat.