18-03-2014 01:04 AM | Russian Federation

Wheat price rises amid Crimea tension but drought saps Australian hopes

Australian exporters are set to benefit from the spike in wheat prices as concerns about the crisis in Ukraine, supply delays in the Americas and fears about US winter wheat production raise the price of the commodity to its strongest yearly start since 2008.

Wheat prices have surged 13 per cent this year. On Monday Chicago Board of Trade May wheat rose to US692.75ยข a bushel.

''There's a lot of balls up in the air and no one has any confidence precisely in the way they are going to land,'' Commonwealth Bank agricultural commodity strategist Luke Mathews said. ''The market as we sit here today has built in a significant risk premium, recognising the uncertainty that exists.''
Full Story : Sydney Morning Herald