Black Sea Port Attacks Drive Global Wheat Price Rally
Russian and Ukrainian attacks on Black Sea ports have disrupted grain exports, causing global wheat prices to surge amid low European maize production.
Attacks on ports in the Black Sea by Russia and Ukraine have disrupted grain exports, triggering a rally in global wheat prices. Chicago wheat rose 6% over the past week and stands 14% higher than it was one month ago.
Russian exporters are currently struggling to divert grain to Baltic ports due to limited capacity. Meanwhile, Ukrainian weekly exports have dropped significantly from July levels, although some shipments continue via the Danube. This supply shock coincides with a 19-year low in European Union maize production, which has increased European demand for wheat as a substitute for livestock feed.
In Australia, wheat prices have partially participated in the global rally, though gains vary by port. Despite the price volatility, the Australian Bureau of Agricultural and Resource Economics and Sciences forecasts a winter crop of 60.9 million tonnes, the fourth largest on record, with wheat expected to reach 29.9 million tonnes.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play