Wheat Prices Soar 30% Amid Ongoing Conflict in Black Sea Region

Wheat prices have surged by 30% since June to a record high for the last decade, according to world exchanges where it's currently traded at around $290 per ton. The significant increase is attributed to the ongoing war between Russia and Ukraine, which are among the top suppliers of wheat globally.

The conflict has severely impacted commercial shipping in the Black Sea, making it difficult for countries like Bulgaria to export their grain reserves. Bulgaria alone has over 7 million tons of wheat stored in warehouses, unable to reach foreign markets due to the logistical challenges.

Bulgaria's chairwoman of the Dobrudja Union of Grain Producers, Radostina Zhekova, stated that they are currently exporting to anyone who can find a trader, as it is extremely difficult for them to participate in auctions. The main reason is the limited commercial shipping in the Black Sea due to the war.

Another factor contributing to the price increase is the traders' expectation of further price hikes, leading them to make larger margins between purchase and selling prices. This trend may continue if military conflicts escalate in the Black Sea region or other areas.