The price of wheat and corn have both moved up to the daily limits today as fear of higher prices as a result of the Russian invasion of Ukraine as traders worried about supply disruptions.
The price of wheat rose to the highest level in over a decade reaching the daily limit price of $9.84 (or 984 cents). That was up 5.35%. The price has not traded that high since April 2008.
Russia is the world's largest exporter of wheat and Ukraine is also a top-4 exporter of it as well. Combined the two countries export 29% of the global wheat.
Corn futures also reached the daily limit of $7.25 (or 725 cents) per bushel. That was up 5.07% and the highest level since May 2021 when the high price reached $7.35 per bushel.
Meanwhile, crude oil futures settle that $103.41. That was up $7.69 or 8.03% . The high price today reached $106.78. The low extended to $95.32. Looking at the weekly chart the next high target comes in at $107.50 from June 2014. Above that and traders will look toward $112.24.
Finally, although inflation is moving higher in the commodities , yields continue to move lower on flight to safety flows.
The 10 year yield is currently down -13 basis points at 1.709% That is down from 2.063% reached on February 16.
Looking at the hourly chart of the 10 year yield below, the price low today tested the low of a swing area between 1.681% and 1.70%(which is also the 50% of the range since the December low). Holding support against the swing level and midpoint may give some pause for cause on further declines at least in the short term. Much will depend upon the flight to safety flows that have been dominating in that market.
