Russia-Ukraine Conflict Drives Up Wheat Futures as Canada Hits Back with Tariffs

The ongoing conflict between Russia and Ukraine has led to a surge in wheat futures. The price of December delivery wheat jumped by $0.11 per bushel to $7.15 on the Chicago Board of Trade, while Kansas City futures added $0.12 per bushel to $7.83.5.

Russia and Ukraine have been attacking each other's port infrastructure and vessels hauling grain, limiting the amount of wheat available for export. Russia is the world's largest exporter of wheat, with a projected shipment of 46 million metric tons, according to the USDA. Ukraine, the sixth-largest exporter, is expected to ship 13.5 million tons of wheat.

Meanwhile, Canada has imposed retaliatory tariffs on $19.9 billion worth of US goods, matching the value of tariffs Washington imposed earlier this month. The tariffs will be applied at rates ranging from 15% to 50%, targeting products such as dairy products, agricultural equipment, and steel.