Russia's Wheat Exports Plummet Amid Black Sea Restrictions

Russian wheat export prices have risen in response to limited supply from Russia and Ukraine due to restrictions in the Azov-Black Sea basin. Analysts at SovEcon consultancy say that global futures are driving up prices, which are now 'finally starting to seriously price in the Black Sea supply shock.'

Export prices for wheat with a 12.5 percent protein content in the Baltic region have increased from $248 per metric ton FOB Vysotsk to $263 by the end of last week.

The bulk of shipments via ports in the Azov-Black Sea basin were halted due to attacks on vessels and damage to terminals, further reducing supply. Wheat exports from Russia may remain at their lowest level since 2010 for the second month running, according to SovEcon.