Wheat Prices Soar as Russia Prepares to Escalate Ukraine Conflict

Global wheat prices have hit a three-year high due to concerns that the war between Russia and Ukraine could escalate, further disrupting supplies from one of the world's most important breadbaskets. The conflict has already damaged ports and grain terminals in the region, significantly curtailing shipments.

Russia is preparing to intensify attacks on Ukraine, including infrastructure targets, after concluding that negotiations for a peace deal have reached a dead end, according to people close to the Kremlin. This escalation could lead to more severe logistical constraints for grain exports from the Black Sea.

Chicago wheat prices have surged 19% this month due to the Black Sea disruptions. Russia and Ukraine account for over a quarter of global exports, as well as large amounts of barley, corn, and sunflower oil.