Black Sea Disruptions Spark Wheat Price Surge

The wheat market has experienced another significant rally due to ongoing disruptions in the Black Sea region. Chicago wheat prices rose by six percent over the week and are now 14% higher than a month ago.

Russia and Ukraine, two of the world's largest grain exporters, have been affected by conflict and port closures, leading to shortages in export capacity. Russia typically moves around 90% of its seaborne exports through the Azov and Black Sea region, but current disruptions have reduced this to just half of normal levels.

Ukraine has also struggled with alternative routes, with weekly exports improving by 28% but still lagging behind pre-conflict levels. Buyers looking for alternatives are finding that Europe's own problems are affecting supply, particularly in France where corn conditions have deteriorated significantly.