The prices of corn and wheat are near record highs as war in Ukraine threatens global supplies
and boosts demand for North American grains.
Corn futures in Chicago exceeded $8 U.S. a bushel for the first time in almost a decade,
approaching a record high price. The most-active July corn contract rose 3% to $8.07 U.S. a
bushel in Chicago with the conflict in Ukraine showing no signs of easing.
Corn futures are nearing an all-time high of $8.49 U.S. per bushel reached in 2012 after drought
and heat damaged crops in the U.S. Midwest. At the same time, wheat contracts surged as cold
and snow slowed planting on the Canadian prairies.
Benchmark wheat futures in Chicago rose as much as 3.5% and settled 2.2% higher at
$11.2875 U.S. a bushel as colder than expected weather across the Canadian prairies and
North Dakota threatened to slow planting.
For the spring wheat seedings, the U.S. Department of Agriculture’s latest crop progress report
showed that 8% of the expected area was planted compared to 18% last year.
The global outlook for corn and wheat supplies has taken a hit as Russia’s invasion of Ukraine
disrupts farming and trade flows in a region responsible for about a fifth of global agricultural
exports.
Spring planting and a surge in fertilizer costs has also impacted spring planting in the U.S. and
Canada, exacerbating supply concerns. The rally in corn and wheat has helped the Bloomberg
Agriculture Spot Index, which tracks farm products including soybeans, sugar and cotton, reach
a record high.