Wheat has been rising in price for the second consecutive session amid escalating tensions in the Black Sea and deteriorating harvest prospects, Bloomberg reports, writes UNN.
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"The most active futures in Chicago rose by 0.9%, as ongoing attacks by Russia and Ukraine heightened concerns about exports from the Black Sea, a key maritime route for two of the world's largest wheat exporters," the publication writes. In July, wheat rose in price by 16%.
"Ukraine and Russia together account for 25-30% of global wheat exports, and disruptions to the upcoming harvest are supporting world prices," Dennis Voznesensky, an agricultural economist at Commonwealth Bank of Australia, said in a report on Wednesday.
On Tuesday, Russia banned ships from anchoring in the Sea of Azov and ports of the Caucasus in areas lacking organized air defense systems. Russia's Defense Ministry stated that its troops continue to strike Ukrainian ports, the publication notes.
Supply concerns also intensified after SovEcon lowered its forecast for Russia's 2026-2027 harvest by 0.7%, citing weaker prospects in the south and a smaller area of spring wheat sowing.
Russia's wheat exports in July are projected to be about 1.5 million tons, roughly a third less than last year and the lowest July figure since 2017, according to a report by Futures International LLC published on Tuesday, which cited logistical constraints as the reason.
Prices also received support from poor harvest prospects in other countries: France's soft wheat production is forecast to decline by 7.6% this year after heat damaged the crop. Prices for spring wheat in the US, rated as "good" or "excellent," also fell by five percentage points compared to the previous week.
Meanwhile, corn prices reached their highest level in more than two months, rising to $4.775 per bushel, before paring gains, supported by the conflict in the Black Sea and concerns that recent heat in Europe will reduce production.
Wheat prices hit a two-year high amid strikes in the Black Sea17.07.26, 09:33