Black Sea Attacks Send Grain Prices Soaring to Two-Year Highs

Grains markets have hit new highs due to escalating attacks on Black Sea shipping and ports. The region is one of the world's most important grain-shipping routes, carrying cargoes from major producers Russia and Ukraine. Renewed threats to vessels and port facilities are raising fears that exporters could struggle to move crops to buyers in Africa, the Middle East, and Asia.

The Black Sea is a critical route for wheat exports, with Russia and Ukraine accounting for nearly one-third of global wheat exports. Disruptions in the region have sent wheat prices soaring to their highest in two years. The most active wheat contract on the Chicago Board of Trade (CBOT) was up 1.1% at US$7.03-3/4 a bushel as of 1021 GMT after touching a two-year high of US$7.11-1/4 in earlier trade.

Soybean prices also hit a two-year peak following a rally in crude oil prices, while corn climbed to its highest in more than a year. Traders warn that disruptions to grain flows from the Black Sea could increase costs for food producers and consumers worldwide. Ukrainian President Volodymyr Zelenskiy said Russia will step up attacks on vessels in the Black Sea, accusing Moscow of plans to undermine Ukraine's grain corridor.