Black Sea Tensions Hold Steady Russian Wheat Prices

Russian wheat export prices held steady last week despite ongoing tensions in the Black Sea region. The price of Russian new-crop wheat with 12.5% protein content for free-on-board delivery in the second half of August stood at $235 per ton, unchanged from the previous week.

This stability comes amidst a backdrop of shipping disruptions and elevated freight costs, which have reduced demand and led to global price drops on speculation that new Black Sea shipping restrictions might be relaxed.

Russia temporarily halted shipping through the Don-Azov Channel after a Ukrainian attack on Russian vessels on July 10. Additionally, Russia imposed a temporary ban on vessel movements at the port of Novorossiysk between midnight and 5 a.m. due to Ukrainian drone attacks.