Black Sea Disruptions Support US Wheat Demand Amid Infrastructure Damage

An ag economist says global export and shipping challenges could continue to be supportive for the U.S. wheat complex, according to K-State University's Guy Allen.

The Black Sea region is experiencing logistical bottlenecks due to increased military action that has destroyed infrastructure such as export facilities, rail transportation, and bulk vessels, significantly curtailing exports.

'In recent weeks, we've seen increased military action which is destroying a lot of infrastructure,' Allen said. 'Export facilities, rail transportation as well as some attacks on bulk vessels as well. That's significantly curtailing exports.'

The destruction of this infrastructure will not be fixed anytime soon, and the question becomes the accessibility of that wheat in the future months.

Allen also points to transportation concerns in the Middle East and Persian Gulf, which are curtailing shipments through the Red Sea and forcing ships to take a longer route around Africa.