Wheat Climbs to Three-Month High on Rising Ukraine War Worries

The futures climbed as much as 7.9% in Chicago, within cents of the daily exchange limit, before ultimately settling up 6.6% after explosions rocked the Ukrainian capital Kyiv. Russia has threatened further missile attacks.

The intensifying conflict calls into question whether the two sides will agree to extend a Ukraine grain-export deal that’s set to expire in about a month. The warring nations are critically important suppliers of wheat and other crops worldwide.

Any slowdown from the Black Sea could boost prices for global food staples, which had recently been retreating. There have already been challenges with Ukrainian crop shipments, as the backlog increases of outbound vessels awaiting inspection in Istanbul.

The most-active Chicago wheat contract pared its earlier advance to end the trading day at $9.38 a bushel, which still marks the priciest level since June 23. Corn settled up 2.2% at $6.9825, the highest since June 21, after jumping as much as 3.4%.

The ease in prices into the close came amid ongoing concern that an economic slump will curb global demand for grains and other farm products. $S&P 500 Index (.SPX.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Food Shortage (BK2649)$ $Chicago SRW Wheat Futures(SEP4) (ZWmain.US)$ $Chicago SRW Wheat Futures(SEP4) (ZWmain.US)$