Wheat futures jump as Russia pulls out of Black Sea agreement

Wheat prices spiked on Monday as Russia's withdrawal from the UN-brokered Black Sea grain agreement over the weekend ignited fresh fears about global food security.

But experts say it's too early to know whether the price increase is a short-term market reaction, or the start of a longer, more sustained trend toward higher grain prices.

"Definitely the prospect of seeing more disruptions on the supply of grain and oilseeds coming out of Ukraine is putting a little pressure on prices right away," said J.P. Gervais, vice-president and chief agricultural economist at Farm Credit Canada.

"And if markets get a sense this is going to be an issue in the mid to long-term, we might see prices move up again. But I think it’s a bit too early to tell.”