Wheat Climbs Nearly 6% After Russia Suspends Black Sea Pact

Chicago wheat futures jumped almost 6% on Monday and corn rose more than 2% 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) was up 5.7% at $8.77-3/4 a bushel at 0816 GMT, after reaching $8.93 earlier in the day for its highest since Oct. 14.

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

Corn rose 2.6% to $6.98-1/4 a bushel and soybeans added 0.6% to $14.09-1/4 a bushel.

"This is an inflationary move, supporting prices of wheat and corn," one Singapore-based trader said. "Prices have risen but further gains will depend on how the situation unfolds."

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.

Hundreds of thousands of tonnes of wheat booked for delivery to Africa and the Middle East are at risk after Russia's withdrawal, with Ukrainian corn exports to Europe also expected to be hit, two other Singapore-based traders said.

The United Nations, Turkey and Ukraine said they are pressing ahead on the grains export deal with a transit plan in place for 16 ships on Monday.

Under the U.N.-brokered grains deal, a Joint Coordination Centre (JCC) comprising U.N., Turkish, Russian and Ukrainian officials agrees on the movement of ships and inspects the vessels. More than 9.5 million tonnes of corn, wheat, sunflower products, barley, rapeseed and soy have been exported from the Black Sea since July.

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