Ukraine-Russia Conflict Drives Wheat Futures Higher

Russia's ongoing war with Ukraine continues to disrupt global grain exports, leading to higher wheat futures prices. The conflict has suppressed Russian wheat shipments, while Ukraine's ports and vessels have been attacked by both sides.

Estonia announced it will ban transit of grain from Russia and Belarus, citing the country's role in blocking Ukrainian ports and disrupting grain exports. Estonian Foreign Minister Margus Tsahkna stated that 'Russia attacks Ukrainian ports, blocks Ukraine's grain exports, and then looks for new routes for its own grain.' Estonia will not provide one.

USDA forecasts Russia's wheat exports at 43 million metric tons, down from 48 million tons a year earlier. Ukraine's wheat exports are projected to total 12.5 million metric tons, down from 14.1 million tons in the previous marketing year.