Black Sea Conflict Drives Wheat Prices to Three-Year High

The price of wheat has reached its highest level in three years due to concerns about exports through the Black Sea. The market is reacting to the potential for further Russian attacks on Ukrainian infrastructure, which could limit grain shipments from the region.

Futures for wheat in Chicago rose 2.6% after a 6.4% jump the previous trading day, with prices increasing by nearly 19% since August. This surge is attributed to fears that new strikes on ports, grain terminals, and civilian vessels could further restrict exports through the Black Sea.

Ukraine and Russia together account for over a quarter of global wheat exports. Buyers are already seeking alternative supplies from countries like Australia and Argentina, but shipping costs are higher than usual due to the lack of maritime security in the Black Sea region.