The price of wheat has climbed to a four-month high and is on course for its biggest monthly gain in eight years after the armed uprising in Russia.
Wheat futures rallied as much as 3.2pc as traders weighed the implications of the greatest challenge to Vladimir Putin’s authority during his 23 years in power.
Convoys loyal to Yevgeny Prigozhin, leader of the Wagner mercenary group, advanced toward Moscow on Saturday, demanding the removal of Vladimir Putin’s army chiefs.
A deal was struck to end the insurrection, prompting Prigozhin to halt his assault and agree to go into exile in Belarus.
The situation could add to worries over the future of the pact that allows Ukraine to ship grain from Black Sea ports, known as the breadbasket of Europe.
The deal is up for renewal in mid-July and Ukraine’s infrastructure minister last week said he was “not optimistic” over its extension.
Meanwhile, Russia is expected to be the world’s biggest wheat exporter this season and next, and any shift in the outlook for its shipments would have a significant impact.
The latest increase in prices puts wheat on track for a 29pc monthly gain, the biggest since 2015, which has also been driven by dry weather parching US corn and soy crops.
Increases in wheat prices are more likely to have a deeper impact more quickly on the developing world than the UK, where wheat makes up a smaller proportion of the total cost of a loaf of bread once energy costs, labour and packaging are taken into account.
