Wheat futures on the three big U.S. exchanges jumped higher Thursday moroning on fears of rising geopolitical tension after a Malaysian passenger plane crashed in eastern Ukraine near the Russian border, traders said.
CBOT wheat rallied this spring on worries that rising tensions between Ukraine and Russia, both major global wheat suppliers, could inhibit grain shipments from the Black Sea region. A Ukrainian interior ministry official quoted by Interfax news agency Thursday said the plane was shot down by a ground-to-air missile.
Minneapolis December spring wheat was up 3.5 percent at one point earlier but was trading at $6.545 a bushel, up 15.5 cents (+2.43%) A about 10:10 am CST.
Crop prices are also supported by new attitude that crop prices had fallen too far considering that there are a lot of weeks yet and a lot of weather risk until this fall’s harvest.
