Black Sea Disruptions Fuel Wheat Price Surge
The global wheat market is on edge due to ongoing disruptions in Black Sea grain exports. Russia and Ukraine's continued attacks on vessels and port infrastructure have effectively halted Ukrainian sea-borne exports and reduced Russian flows from the Sea of Azov shipped via the Kerch Strait, according to Carlos Mera, head of agricultural commodities research at Rabobank.
As a result, Chicago wheat prices rose by over 1% on Wednesday, with the most-active contract reaching US$6.70 a bushel. Corn edged higher due to dry weather in parts of the US Midwest, while soybeans eased.
The situation was further exacerbated after three major Russian grain terminals restricted truck deliveries, citing heightened shipping risks following recent attacks and changes to grain flows after restrictions in the Sea of Azov. A missile strike also hit the Russian port city of Taganrog, a key grain-export hub on the Sea of Azov.