Russia-Ukraine Conflict Pushes Wheat Prices Above $6.80 Per Bushel

Wheat prices have surged over 3% to above $6.80 per bushel, nearing their two-year high of over $7 reached on July 22.

The escalating conflict between Russia and Ukraine has heightened concerns about grain exports from the world's largest wheat producers, with hostilities disrupting shipping in the Black Sea.

Russian authorities are considering arming grain vessels with machine guns and mobile missile systems to defend against Ukrainian drone strikes, while Ukrainian ships face Russian attacks on ports and infrastructure.

SovEcon has lowered its forecast for Russian wheat exports this season by around 4% due to the disruptions, which coincide with the regional harvest and threaten peak-season shipments.