Romanian Wheat Prices Soar Amid Black Sea Logistics Concerns
Romanian milling wheat prices have surged to their highest levels since March 2023, driven by concerns over Black Sea logistics and strong demand from Saudi Arabia, North Africa, and the European Union.
The price increase has been particularly notable in recent weeks, with Romanian milling wheat FOB (free on board) prices rising by approximately $30 per metric ton to reach a new seasonal high of $288 per metric ton at Constanța in late August.
This represents a significant jump from last year's prices, which were around $50 per metric ton lower. The increase has been attributed to geopolitical tensions and the risk premium associated with Black Sea security concerns.
However, last Friday saw a slowdown in price growth as markets assessed Russian comments on the possibility of a peace agreement with Ukraine, highlighting that part of the price increase is situational and driven by geopolitics.