Russia-Ukraine War Drives Global Wheat Prices to Record High

The ongoing Russia-Ukraine war has led to a significant shortage of wheat in global markets. As a result, prices have surged by 40% from June lows to a three-and-a-half-year high, according to benchmark Chicago futures.

Top wheat importers in Asia, the Middle East, and Africa are facing difficulties in securing supplies due to attacks on vessels and port infrastructure in the Black Sea region. This has led many traders and millers to hold off making alternative purchases for the past few months, hoping for an agreement between Russia and Ukraine to allow grain shipments.

However, local supplies are dwindling, especially in import-dependent Asia, with competition for cargoes expected to intensify until the end of the year when the Southern Hemisphere harvest kicks in. Prices are set to rise further in the meantime.