Citi commodities analysts said Tuesday’s incident is a reminder of lingering inflationary risk in the goods market
The collapse of a major dam in southern Ukraine sent global prices of wheat and corn higher.
Wheat prices gained 2.4% in early trading Tuesday at the Chicago Mercantile Exchange, to $6.39 a bushel. The cost of corn rose more than 1% (to $6.04 a bushel) and oats gained 0.73% ($3.46 per unit).
Prices had jumped higher earlier in the day.
The destruction of Kakhovka dam and hydroelectric power station, which sits on the Dnieper River in an area that Moscow controls, raised anxiety about a potential disruption to global supplies.
