* Wheat prices reached their highest level since March 2008
The war between Russia and Ukraine raises long-term supply problems
* Chicago Corn and Soybeans Rise on Supply Concerns (Price Update, European Trade Restriction)
Written by Michael Hogan
HAMBURG (Reuters) – Chicago wheat futures rose more than 7 percent on Monday, pushing the border to a 14-year high on fears of disruption to global supplies until the Russia-Ukraine conflict is resolved.
Russia and Ukraine together account for about 29% of global wheat exports and 19% of maize exports.
Since Russia launched the campaign it calls a “special military operation” on February 24, commodity markets have soared.
Wheat markets rose more than 40% last week, the biggest weekly rise ever. The most active Chicago Board of Trade wheat rose 7.2%, above the daily limit of 85 cents, to $12.60 per $4 a bushel at 1138 GMT, the highest level since March 2008.
Corn prices are up 2.7% to $7.75 per bushel, and soybeans are up 2.05% to $16.94 per bushel. Corn and soybeans reached their highest levels since September 2012.
“Until the fighting in Ukraine ends, the resumption of wheat and corn exports from Ukraine and Russia cannot be expected,” said a European trader.
Russia and Ukraine provide 80% of the world’s exports of sunflower oil, which rivals soybean oil.
Ukrainian ports remain closed and traders are reluctant to trade Russian wheat after Western sanctions, so buyers are looking for alternative suppliers.
Export demand for EU wheat rose last week and is expected to continue rising.
“With this sudden flock to other sources, there is concern that some countries will impose export restrictions to prevent the absorption of their domestic supplies,” another trader said, but added that some large importers were still willing to buy out of fear of higher prices. in addition to.
The Bulgarian government has said it will increase its wheat reserves, while producers fear an export ban.
Already, Hungary banned all grain exports with immediate effect due to price hikes.
Algeria, the largest importer of wheat, issued a tender on Sunday for the purchase of wheat. Two tenders to purchase wheat were also launched on Monday by Taiwan and Tunisia.
(Additional reporting by Michael Hogan in Hamburg; Additional reporting by Naveen Thukral in Singapore; Editing by Barbara Lewis)
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