Wheat futures reached new multi-year highs last week, as war between major exporters Russia and Ukraine continued to raise concerns about the global supply of the commodity.
The moves in the commodity market come amid reports that Russian forces have surrounded two key cities in southern Ukraine.
Wheat futures on Wednesday settled at $10.59 per bushel, up 7.62%, the highest level since wheat traded at $10.9125 on March 26, 2008. For a second consecutive day, wheat was at “limit up,” meaning it reached the highest amount the price of a commodity is allowed to increase in a single day.
“Look at what’s happening to wheat prices right now. We could be talking about a major food inflation story,” Helima Croft, RBC Capital Markets’ head of global commodity strategy, told CNBC’s “Worldwide Exchange” on Wednesday morning. - CNBC