Wheat prices soar as Russia threatens global supplies

October 31, 2022

In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.

Wheat prices soar as Russia threatens global supplies

Wheat and corn futures soared on world markets after Russia pulled out of a deal to allow grain exports from Ukraine through the Black Sea.

The most-traded wheat contract on the Chicago Board of Trade jumped as much as 7.7% to $8.93 a bushel at the open on Monday, the highest since 14 October, and later traded at $8.79.

Corn prices rose as much as 2.8% to $7 a bushel and soybean oil gained 3%.

Data is expected to show eurozone inflation hitting a new record high of 10.3% in September, partly because of higher food prices.

The European Central Bank whose primary target is to control inflation, on Thursday confirmed further rate hikes in the coming months in an attempt to bring prices down.

Will UK tax prices increase?

All earners in the UK, not just the wealthiest, will need to pay higher taxes if public services like the NHS are to improve, an ex-Chancellor has warned.

The pound fell to a record low against the dollar at the end of September and government borrowing costs rose in the wake of then-Chancellor Kwasi Kwarteng's mini-budget, where he announced major tax cuts without detailing how they would be paid for.

Jeremy Hunt, who replaced Mr Kwarteng as Chancellor, needs to find billions of pounds of savings to keep the UK's debt under control

Chancellor Jeremy Hunt will set out his tax and spending plans for the UK on 17 November, two weeks later than originally expected.

Sri Lanka Inflation Slows for First Time in Year in October

Sri Lanka’s key inflation rate slowed to 66% in October after hitting 69.8% in September

The surge in the Colombo Consumer Price Index (CCPI) was led by an 85.6% jump in food prices and a 56.3% climb in the non-food group

The country battles its worst economic crisis since its independence in 1948

Canada’s economy gearing down

Canada’s growth rate fell by half in the third quarter from its pace in the first six months of the year, ahead of what’s expected to be an even sharper downturn later this year.

The pace of monthly gains was enough to produce annualized growth in the third quarter of 1.6 per cent.

A preliminary estimate from Statistics Canada, versus a 3.3 per cent pace in the second quarter and 3.1 per cent during the three first months of the year.

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