Russian wheat prices hit one-year high amid stronger ruble

Russian wheat prices have reached their highest level in a year amid the rapid strengthening of the ruble and reduced sales from farmers. According to consulting firm IKAR, the price of wheat shipped through the port of Novorossiysk, the main Black Sea export hub, rose by 1.7% to $244 per ton. This marks the highest level since May 2025.

Analysts say prices have been steadily increasing over the past month due to a combination of two factors: the stronger Russian currency and rising grain prices on global markets. IKAR Director Dmitry Rylko explained that the stronger ruble reduces the profitability of grain exports, as exporters receive lower revenues in local currency after converting dollar earnings.

As a result, Russian farmers have started holding back wheat sales while waiting for more favorable market conditions. This behavior has tightened supply and pushed prices even higher. Experts also note that the ruble has become one of the world’s best-performing currencies against the US dollar this quarter, largely supported by strong foreign-currency inflows from oil exports.

Global grain market conditions have also contributed to higher prices. Last week, wheat futures in Chicago climbed to their highest level in two years. The increase was driven by worsening crop conditions in the United States, as well as soaring energy and fertilizer costs linked to the conflict in the Middle East.

At the same time, soft red winter wheat in Chicago fell 0.2% to $6.46 per bushel, although it still maintained a weekly gain of 1.7%. The market was also affected by Argentina’s decision to cut export taxes, potentially making Argentine grain more competitive than US supplies. Corn prices rose by 0.5%, while soybeans gained 0.4%.

Tags: prices, wheat, Russia