London, (Business News report)|| Wheat prices rose to their highest level since 2012 as the war between Russia and Ukraine have begun.
US wheat and corn futures rose to the highest daily trading level on Thursday, while soybean prices hit their highest level since 2012 after Russian forces attacked Ukraine, raising fears of impact on global supply.
For the third day in a row, wheat prices continued to rise, reaching their highest level in more than nine years, while corn jumped to an eight-month high, according to Reuters.
Chicago Board of Trade May wheat futures jumped 5.7% to about $9.34 a bushel, the highest price since July 2021.
Corn rose 5.1% to $7.16 a bushel, its highest level since June 10.
Soybean contracts for May rose 4.2% to $17.41 a bushel, recording a rise for the sixth consecutive session. They reached their highest level since September 2021 at $17.56 earlier in the session.
Grain prices also recorded record levels in trading sessions in the European market. The price of wheat reached an absolutely unprecedented price with 344 euros per ton at the Euronext, which manages a number of European stock exchanges.
The prices of wheat and corn, which are Ukraine’s fourth exporter in the world, rose significantly, since the opening of trading sessions, hours after the start of the Russian invasion of Ukraine.
The total shares of Russia and Ukraine in global wheat exports reached 25% in 2019.
Russia, the world’s largest wheat exporter, had a share of nearly 18% of global wheat exports two years ago.
Experts in politics and agriculture warn that the Russian-Ukrainian conflict will cause disruptions to the wheat trade, and could cause an increase in its global prices between 10% and 20%.
The escalating crisis over Ukraine has raised fears that shipments from Russia, which represents a major weight in global grain trade and accounts for 24 percent of the world’s total wheat exports, will be affected.
Any sanctions by world powers could threaten a vital source of supply at a time when unfavorable weather and strong demand have already reduced crop stocks.