Black Sea Conflict Sends Wheat Prices Higher Amid Disrupted Exports

Global wheat prices edged higher on Thursday as ongoing conflict between Russia and Ukraine disrupted exports from the Black Sea. The fighting has led to a surge in attacks on ships, ports, and export terminals, hampering shipments. Despite this, wheat prices have not fallen significantly, remaining up over 25% for the year.

Rabobank analyst Vitor Pistoia noted that while grain delivery was disrupted, Russia and Ukraine together harvested more than a million metric tons of wheat above their five-year average this year. However, he also cautioned that 'the key uncertainty is how the conflict between Russia and Ukraine evolves.'

In related markets, corn rose 0.2% to $4.61 a bushel, while soybeans gained 0.2% to $11.77-1/2 a bushel. These increases were due in part to projections that U.S. corn production would reach 16.160 billion bushels this year.