Russia-Ukraine War Disrupts Global Wheat Prices and Supply Chains

The ongoing Russia-Ukraine war has disrupted global wheat prices due to damaged grain export terminals in both countries. Ukraine and Russia are major producers of wheat, barley, corn, and sunflower seeds, with commercial shipping being targeted in the region.

According to the U.S. Department of Agriculture's August World Agricultural Supply and Demand Estimates (WASDE) report, historical and projected wheat exports for top seven exporting countries show a significant increase in Russian wheat exports over the past five years.

The damage to export infrastructure has impacted global wheat prices, with Russia accounting for about 90% of its total sea-based exports from ports in the Black Sea and Sea of Azov. Industry estimates suggest that Russia exported 46.3 million metric tons of grain from these ports last year.