Black Sea Disruptions Threaten Asia's Wheat Supplies
Wheat supplies in Asia are at risk due to disruptions in shipments from Russia and Ukraine. The Black Sea, which accounts for approximately 32% of global wheat exports, is experiencing a surge in attacks on ports, grain terminals, and commercial vessels.
Total shipments out of the Black Sea were down more than 40% in late July compared to the previous year, according to the International Food Policy Research Institute. This has led Asian buyers to look for alternative supplies, including from Australia, North America, and Argentina.
The premium for these alternative supplies is significant, with Australian Premium White wheat quoted at around $315-$320 per ton, compared to $260-$280 for most Black Sea cargoes. The cheapest U.S. wheat was quoted at about $305 a ton, according to traders.