Russia-Ukraine war drives international wheat prices to two-year high

International wheat prices have surged to a two-year high, directly fueled by the ongoing conflict between Russia and Ukraine. Reciprocal attacks on Black Sea and Sea of Azov port infrastructure, along with drone strikes on cargo ships, pushed wheat prices up by 1.83% to $239.18 per ton on the Chicago market.

Other grains also saw gains, with corn rising 1.92% to $176.86 per ton and soybeans adding 0.25% to $431.28 per ton. In the local market, wheat saw a smaller increase, rising $1 to $205 per ton for immediate delivery. Analysts note that significant quantities of grain from the 25/26 harvest are still available for sale, with limited exports currently occurring and planting activities underway.

Market analysts emphasize that the tension between Russia and Ukraine is a critical factor for the global wheat market. The Union of Grain Exporters of Russia warned that attacks on ports and vessels could paralyze Black Sea exports. In a worst-case scenario, Russia might stop exporting between 30 and 35 million tons of wheat, representing about 15% of world trade. Moscow has reportedly reinforced protection for commercial vessels and is exploring alternative logistics routes to maintain export flows.

Analysts from the brokerage Granar detailed that the Russian government announced it would bolster protection for ships in the Sea of Azov-Black Sea basin and develop alternative cargo routes. The Russian Ministry of Transport stated that a working group was formed to find new routes and redirect cargo flow due to paralyzed loading and transport at terminals, stemming from drone attacks on ships. Several stevedoring companies have expressed readiness to manage additional cargo volumes and accelerate loading.

“

varias empresas estibadoras ya manifestaron su disposición a gestionar volúmenes de carga adicionales y a acelerar el...