Black Sea crisis drives wheat prices to a three-year high

The Wall Street Journal: Black Sea Crisis Intensifies, Wheat Prices Surge to Three-Year High

In the latest trading session, wheat prices rose to $7.55 per bushel, poised to hit a closing record high since July 2023. This surge continues the previous sharp increase, with Chicago futures prices up nearly 30% from their June-end lows.

Market analysts point out that mutual attacks by Russia and Ukraine on grain-carrying vessels and food export terminals have brought Black Sea wheat exports to a standstill.

Although regional food supply remains generally stable, Andric Pijn, analyst at Rabobank in the Netherlands, warned that grain inventories are now under risk.

Exporters are seeking alternative transport routes, but Pijn noted that these alternatives are unlikely to compensate for the loss of capacity at ports such as Odessa and Novorossiysk.

Andrei Sizov, an agricultural commodities analyst, said, “Never before in the history of the modern grain market has such a situation occurred—neither during Russia’s grain export ban in 2010 nor at the beginning of the conflict in early 2022 did tensions reach this level.”

Original source: toutiao.com/article/1874685447238987/

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