Wheat prices rise amid escalating tensions in the Black Sea

Global wheat prices have risen the sharpest in six months as tensions in the Black Sea escalate after the Kremlin attacked alleged Ukrainian drones.

This escalation comes at a crucial time when the extension of the grain deal, which would allow Ukraine to continue exporting crops across the Black Sea, is being discussed, writes Вloomberg.

The publication notes that wheat futures in Chicago rose by 1.2% to $6.475 per bushel, and in Singapore were trading at $6.41. A day earlier, prices jumped another 5%. Corn prices fell by 0.3% on Thursday, while soybean prices remained almost unchanged.

Farm Futures analyst Jacqueline Holland said the drone attack has reignited concerns about global wheat supplies and raised some traders’ concerns that the recent sell-off may have gone too far.

It is reported that this outbreak of tension was enough to provoke buying in the wheat market. At the same time, earlier prices here fell to a two-year low due to favorable harvest prospects in the northern hemisphere, where most of the world’s wheat is grown.

According to Turkish media reports, the deputy defense ministers of Turkey, Russia, and Ukraine are to discuss the extension of the agreement, which, according to Moscow, expires on May 18.

In early May, a queue of ships gathered in the Bosphorus due to Russia’s blocking of the passage of bulk carriers with Ukrainian grain. Russia is openly sabotaging the grain deal.

Tags: prices, Black Sea region, wheat, war