Black Sea Disruptions Send Wheat Prices Soaring Again

Disruptions in Black Sea grain imports have driven up wheat prices by over 1% for the second consecutive session, according to a report from Marine News Magazine. The escalation of violence between Russia and Ukraine has effectively halted Ukrainian seaborne exports, while Russian shipments from the Sea of Azov via the Kerch Strait have also been reduced.

As explained by Carlos Mera of Rabobank's agricultural commodities research, 'The escalation of violence between Russia and Ukraine on the Black Sea has effectively stopped Ukrainian seaborne exports, and reduced Russian shipments from the Sea of Azov via the Kerch Strait.'

The Chicago wheat contract rose 1.1% to $6.70 per bushel, while soybeans fell 0.3% to $12.16-12 a bushel. Corn prices increased by 0.2% to $4.81-1/4 bushel.

Three major Russian grain terminals have restricted truck deliveries due to 'heightened shipping risks' following recent attacks and changes in grain flows as a result of restrictions on the Sea of Azov.