The grain market reacted with a jump in prices to Russia’s exit from the “grain agreement”, but the reaction may weaken

Chicago wheat futures rose more than 5% on Monday as Russia’s withdrawal from a Black Sea export agreement raised concerns over global supplies.

The most-active wheat contract on the Chicago Board of Trade (CBOT) jumped 5.8% to $8.77-1/2 a bushel as of 0019 GMT, after earlier hitting a high of $8.93 a bushel.

Corn rose 2.3% to $6.96-1/2 a bushel and soybeans added 1.1% to $14.15-1/4 a bushel.

Moscow suspended its participation in the Black Sea deal on Saturday in response to what it called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.

Kyiv said Russia was making an excuse for a prepared exit from the accord and Washington said it was weaponising food.

Grain markets have been sensitive to developments in Moscow’s eight-month-old invasion of Ukraine as the two countries are among the world’s largest suppliers of wheat.

Wheat futures hit a record high of $13.64 a bushel in March.

Tags: wheat, grain, prices