Wheat prices climbed to their highest since February as Russia mounted large attacks on Ukrainian ports and grain storage facilities on the Danube river.
Futures contracts rose 8.6% on Monday after a Russian drone attack destroyed a grain storage silo in the Ukrainian port of Reni. Corn prices were also 6% higher.
Almost another 3% was added early on Tuesday to top US$777 per bushel in early trading on the Chicago Mercantile Exchange, their most expensive in five months.
After starting 2020 at around US$500 a bushel, wheat prices rose to above US$800 during the pandemic and then after Ukraine was invaded by Russia last February shot up to a 14-year peak of around US$1200, as both countries produce not far off a third of globally traded wheat, and then rebounded after India announced an export ban.
Prices traded in Chicago slipped to US$600 in early May but have risen in recent weeks as Russian threats over Black Sea shipping coincided with a severe dry spell in key growing regions in the United States and recent warnings about the likelihood of an El Niño weather event in the second half of the year.