GRAINS-Wheat climbs 5% to 2-week high as Russia suspends Black Sea agreement
Russia suspends participation in Black Sea grain exports deal
Wheat futures jump 5%, at highest since mid-Oct, corn up 2%
Black Sea wheat, corn supplies at risk on Russia withdrawal
U.N., Turkey, Ukraine press ahead with grain exports
(Recasts with milestone; adds quote, details)
By Naveen Thukral
SINGAPORE, Oct 31 (Reuters) - Chicago wheat futures jumped more than 5% on Monday and corn rose over 2% as Russia's withdrawal from a Black Sea export agreement raised concerns over global supplies.
The most-active wheat contract on the Chicago Board of Trade (CBOT) jumped 5.4% to $8.73-3/4 a bushel as of 0455 GMT, after climbing earlier in the day to $8.93 a bushel, the highest since Oct. 14.
Wheat futures hit a record high of $13.64 a bushel in March.
Corn rose 2.2% on Monday to $6.96 a bushel and soybeans added 0.8% to $14.12 a bushel.
"This is an inflationary move, supporting prices of wheat and corn," said a Singapore-based trader. "Prices have risen but further gains will depend on how the situation unfolds."
Moscow suspended its participation in the Black Sea deal on Saturday in response to what it called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.
Kyiv said Russia was making an excuse for a prepared exit from the accord and Washington said it was weaponising food.
Hundreds of thousands of tonnes of wheat booked for delivery to Africa and the Middle East are at risk following Russia's withdrawal, while Ukrainian corn exports to Europe will take a hit, two other Singapore-based traders said.
The United Nations, Turkey and Ukraine said they are pressing ahead on the grains export deal with a transit plan in place for 16 ships on Monday.
Under the U.N.-brokered grains deal, a Joint Coordination Centre (JCC) made up of U.N., Turkish, Russian and Ukrainian officials agrees on the movement of ships and inspects the vessels. More than 9.5 million tonnes of corn, wheat, sunflower products, barley, rapeseed and soy have been exported from the Black Sea since July.
Grain markets have been sensitive to developments in Moscow's eight-month-old invasion of Ukraine as the two countries are among the world's largest suppliers of wheat. (Reporting by Naveen Thukral; Editing by Tom Hogue)
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