World wheat prices have jumped to their highest level in three years, as the market fears further attacks on Ukrainian port infrastructure and disruptions to exports across the Black Sea.
This is reported by Bloomberg.
Wheat prices in Chicago rose 2.6% on Aug. 27, to their highest level since July 2023. The price of the grain has risen about 18% in the past month, and 6.4% in one day. The price increase was driven by fears that new Russian attacks on Ukrainian infrastructure would complicate grain exports from the Black Sea region.
Ukraine and Russia together account for more than a quarter of global wheat exports, so disruptions to supplies from the region could force importers to look for alternative suppliers. Buyers are already looking at wheat from Australia and Argentina, but they are more expensive to ship.
If shipping safety in the Black Sea deteriorates, grain prices could continue to rise. This also poses a risk of higher food prices in countries that are heavily dependent on Ukrainian and Russian wheat.
What preceded
Russian attacks on foreign vessels in Ukrainian waters have become more frequent recently. In particular, on July 19, a strike on the Guinea-Bissau-flagged Golden Leo killed 10 people — crew members and a Ukrainian pilot.
On July 27, Ukraine called a meeting of the UN Security Council over Russian attacks on ships in the Black Sea. The Foreign Ministry says the attacks on ships could lead to higher food prices in Africa, Asia, the Middle East, Latin America and other regions.
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