Black Sea Attacks Spark Grain Price Surge

Grain markets have reached new highs due to escalating attacks on Black Sea shipping and ports, causing concerns over food inflation. Wheat prices have surged to their highest in two years, reaching $7.11-1/4 a bushel on the Chicago Board of Trade. Soybean prices have also hit a two-year peak at $12.55 a bushel, while corn climbed to its highest point since April last year.

The Black Sea 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.

Ukrainian President Volodymyr Zelenskiy accused Moscow of plans to undermine Ukraine's grain corridor, stating that Russia will step up attacks on vessels in the Black Sea. This has already affected businesses and shipping, with Geneva-based vegetable oil producer Allseeds halting operations in Ukraine's southern Odesa region due to escalating Russian missile and drone attacks.