Black Sea Blockade Sends Global Grain Prices Soaring

The blockade of shipping in the Black Sea is causing significant disruptions to global grain supplies. Russia and Ukraine account for more than a quarter of global wheat trade, which has led to a sharp decline in combined wheat exports from both countries.

According to SovEcon, the combined wheat exports from Ukraine and Russia in July-September may amount to approximately half of last year's volume. This is due to intensified attacks on ports, grain terminals, elevators, and vessels.

Egypt, the world's largest wheat buyer, has not received grain from the Black Sea for about a month. As a result, wheat prices have risen to their highest level in three years.