CHICAGO: Chicago Board of Trade wheat futures posted their biggest-ever weekly gain as prices on Friday jumped by their daily limit on deepening fears that Russia's attack on Ukraine will cause prolonged disruptions to exports from the Black Sea region.
Trading was volatile amid uncertainty over how much global demand may shift to the United States and to what extent the conflict will hamper crop plantings in Russia and Ukraine.
The most actively traded wheat futures Wv1 climbed 6.6%, or the expanded 75-cent limit, to a 14-year high of $12.09 a bushel. The contract ended up 40.6% for the week.
With Ukrainian ports closed and operators reluctant to trade Russian wheat in the face of Western financial sanctions, buyers are trying to find alternative suppliers.
Louis Dreyfus Co, one of the world's largest agricultural commodity merchants, said it had suspended operations in Russia. Read full story
Russia's trade and industry ministry, meanwhile, recommended the country's fertilizer producers temporarily halt exports. Read full story
"Things look scarier than they did yesterday," said Jim Gerlach, president of commodities broker A/C Trading in Indiana.
CBOT corn Cv1 rose to its highest price since September 2012 at $7.82-3/4 a bushel before trimming gains as traders booked profits, brokers said. The most-active May contract CK2 settled 6-1/2 cents up at $7.54-1/4 and posted weekly gains of 15%.
CBOT soybeans Sv1 finished down 7-1/4 cents at $16.60-1/2 a bushel and rose 5% over the week. Traders weighed the loss of sunflower oil exports from Ukraine and Russia against improved soybean crop conditions in South America and profit-taking in oilseeds. Read full storyPOI/
Russia and Ukraine account for about 29% of global wheat exports, 19% of corn exports and 80% of exports of sunflower oil, which competes with soyoil.
Euronext wheat raced to record highs as export demand for EU supplies surged from importers searching for alternatives to Black Sea grain, traders said. Read full storyRead full story
"The demand for wheat on the physical market in (nearby) delivery is unprecedented," consultancy Agritel said. "Buyers face delivery defaults for Black Sea origins.- Reuters