Wheat and Corn Prices Surge Amid Ongoing Conflict

The global wheat and corn prices have surged to their highest levels in recent months due to a combination of factors, including the ongoing conflict between Russia and Ukraine. Wheat settled at 784 cents a bushel on Friday, its highest close since February 2023, with a 12.1% increase on the week and over 54.5% YTD.

December corn also reached its highest close since July 2023, settling at 536.5 cents a bushel and up 21.8% YTD. The corn contract has seen a significant rise in August, putting it on track for its best month since April 2021 with a 15.6% increase.

The prices have been affected by the damage to port and grain export infrastructure in Ukraine, as well as rising insurance costs. Egypt, which relies heavily on Russian and Ukrainian wheat, is particularly vulnerable to price increases. The country's bread subsidy program has limited flexibility to absorb higher costs.