The price of wheat has hit a four-month high following a military insurrection in Russia that has raised uncertainty about grain shipments from the Black Sea region.
Wheat futures on the Chicago Mercantile Exchange rose as much as 3.2% as traders assessed the potential impact of events in Russia, where a paramilitary group began to advance on Moscow before the armed uprising was resolved.
The latest spike brought wheat prices to a 29% gain for the month of June, the biggest monthly increase since 2015.
The price of wheat was last up 2.5% to $7.6525 U.S. per bushel in Chicago trading.
Russia is the world’s largest wheat exporter and any impact to its shipments out of the Black Sea has a significant impact on global prices of the popular grain.
While there doesn’t appear to be any current disruptions to wheat exports in Russia, the prospect of political instability in the country has commodity traders concerned.
Both the shipping industry and agriculture sector in Russia appear to be operating normally right now, according to media reports.
Wheat prices have been trending higher over the past 18 months following Russia’s invasion of Ukraine, which is another major producer of the grain.
Canada exports more than $6 billion worth of wheat each year, making it the fourth largest exporter of wheat in the world, according to government data.
