Wheat Prices Soar Amid Black Sea Disruptions

Global wheat prices have surged to nearly three-year highs due to disruptions in export logistics caused by strikes on Black Sea infrastructure.

The market is responding to increasingly severe disruptions, particularly following strikes on Ukraine's largest port on the Danube and Russian terminals in Novorossiysk over the past two weeks.

Russia is the world's largest grain exporter, while Ukraine ranks fifth, accounting for around 30% of global wheat exports together.

Disruptions to ports in the Sea of Azov and the Black Sea could reduce global grain supplies this year by 86 million tonnes, or about 17% of global exports. Of this, 52 million tonnes are accounted for by Russia, and a further 34 million tonnes by Ukraine.