Wheat prices rose more than 3% to above $6.80 per bushel, moving closer to the two-year high of over $7 reached on July 22. The increase comes as escalating hostilities between Russia and Ukraine intensify concerns over grain exports from two of the world’s largest wheat suppliers.
The conflict is increasingly disrupting shipping in the Black Sea, prompting consultancy SovEcon to cut its forecast for Russian wheat exports in the current marketing season by roughly 4%. In response to mounting security risks, Russian authorities are reportedly considering arming grain vessels with machine guns and mobile missile systems to protect them from Ukrainian drone attacks.
At the same time, Ukraine continues to endure Russian strikes on ships, ports, and other Black Sea infrastructure. Local farm associations warn that many producers could be driven into bankruptcy if maritime exports remain blocked. These disruptions are unfolding during the regional harvest, jeopardizing peak-season shipments and pushing importers to look for alternative sources of wheat.
