War, Weather, and Trade Spats Pound Global Wheat Supplies

The global wheat supply is facing unprecedented challenges due to war, weather, and trade disputes. The world's breadbaskets are getting pounded by drone strikes and extreme weather conditions, leading to higher prices for wheat.

The United States is expected to have its worst wheat harvest in over 50 years, with droughts affecting major producing states like Kansas and Oklahoma. Similarly, France's wheat yields are down due to record heat this summer, while Germany's main farmers group reported lower grain yields due to drought and heat.

In the Black Sea region, Russia and Ukraine have stepped up their attacks on each other's grain export terminals and ships, nearly grinding to a halt. This has forced grain shipments to take a longer, more expensive route around South Africa.

The situation is exacerbated by a supercharged El Nino, which further threatens water levels in key transportation routes like the Panama Canal and Rhine River.