Wheat prices soar to highest since 2008, trade ‘limit up’ on potential Russia supply hit

The price of wheat on Tuesday rose to its highest levels in more than a decade, with traders concerned about global supply disruption as Russia’s invasion of Ukraine advanced.

A convoy of Russian military vehicles is approaching Ukraine’s capital of Kyiv, satellite imagery taken Monday indicated.

Wheat futures reached 984 cents per bushel at the highs of Tuesday’s session — the highest since April 4, 2008, when wheat traded as high as 985.5 cents per bushel.

Russia is the largest exporter of wheat, and Ukraine is among the four-biggest exporters of the commodity, according to JPMorgan.

Out of the 207-million-ton international wheat trade, 17% comes from Russia and 12% comes from Ukraine, according to Bank of America.

“Wheat and corn are the most exposed agricultural markets to any potential escalation in tensions,” JPMorgan’s Marko Kolanovic said in a Feb. 14 note.

Corn futures on Tuesday also hit a high of 722 cents per bushel, their highest level since May.