Commodities
Black Sea Disruptions Send Global Grain Prices Soaring
Global grain prices have surged to near three-year highs due to escalating attacks disrupting port infrastructure and shipping in Ukraine and Russia. Markets are increasingly pricing in the risk of prolonged supply disruptions from the region.
The impact on the wheat market could be more severe than the disruption in the Strait of Hormuz was for crude oil, analysts say.
Ukraine's grain exports in August are down about 75% year-on-year amid disruptions to Black Sea port operations. The situation is particularly important for Ukraine, where agriculture accounts for around 60% of export revenues.