Prices climbed above $6.80 per bushel, nearing a two-year high, as escalating Russia-Ukraine hostilities threatened Black Sea grain shipments during the harvest season.
Wheat prices rose more than 3% to above $6.80 per bushel, approaching the two-year high of over $7 reached on July 22, as intensifying hostilities between Russia and Ukraine deepened concerns over exports from two of the world’s largest wheat suppliers. The conflict has increasingly disrupted shipping activity in the Black Sea, prompting consultancy SovEcon to cut its Russian wheat export forecast for the current marketing season by about 4%. Russia is also considering arming grain vessels with machine guns and mobile missile systems against Ukrainian drone strikes, while Ukraine continues to face attacks on ships, ports and other Black Sea infrastructure. Local farm groups have warned of widespread bankruptcies if maritime exports remain suspended. The disruptions are unfolding during the regional harvest, raising the risk to peak-season shipments and pushing importers to seek wheat from alternative origins.