Black Sea Disruptions Send Wheat Prices Soaring

Global wheat prices have surged by about 30% since June and reached their highest level since July 2023, fueled by disruptions in exports through the Black Sea.

The market fears that the escalating confrontation between Russia and Ukraine could destabilize the global food market.

Russia and Ukraine together account for over a quarter of global wheat exports, making them major suppliers of barley, corn, and sunflower oil to countries in Africa and Asia.

Russian wheat exports in August are expected to drop by more than 50% compared to the same period last year, while Ukrainian agribusiness exports this season may be less than half of what was forecasted before the escalation began in July.