LONDON: Commodity prices stormed higher on Tuesday as Russia’s invasion of Ukraine escalated and Western sanctions disrupted air and sea transport, threatening flows of raw materials.
In agricultural markets, Chicago wheat futures jumped more than 5 percent as traders feared prolonged disruption to global supplies after Ukrainian ports shut.
European wheat marched more than 6 percent higher while Chicago corn climbed by 5 percent.
Ukraine and Russia together account for about 29 percent of global wheat exports, 19 percent of global corn exports and 80 percent of world sunflower oil exports.
Malaysian palm oil futures vaulted more than 7 percent to a record peak on Tuesday on the prospect of rising demand as the closure of Ukrainian ports hits supplies of sunoil from the Black Sea region.
The benchmark European carbon contract, however, plunged 16 percent, decoupling from the energy markets it usually tracks.