Wheat Prices Soar as Russia-Ukraine War Disrupts Global Supplies

Russia and Ukraine's war is disrupting wheat supplies worldwide, pushing prices to new highs. The Black Sea region, which accounts for over a quarter of global wheat trade, has been severely impacted by attacks on ports, grain terminals, silos, and vessels.

Russian wheat exports are expected to fall to 1 million tonnes in September from 5 million tonnes a year earlier, while Ukraine is set to ship about half that amount this month. The two countries together account for around 30% of global seaborne wheat exports.

Egypt, the world's largest wheat buyer, has seen its imports fall sharply due to the disruption, with official data showing a decline from 876,139 tonnes in September last year to 143,870 tonnes this month. The country is now looking towards France and other European suppliers.

Australia has emerged as an alternative source of wheat for Asian buyers, but transportation costs are adding to their expenses. The sudden increase in demand is putting pressure on these alternative suppliers, with prices expected to remain high until the Southern Hemisphere harvests provide additional supplies later this year.