Wheat values surged following Russia’s recent missile assault on the Black Sea port city of Odesa over the weekend, continuing an upward trajectory from a more than 5% increase last week.
Today’s 6.6% price hike came in response to Moscow’s decision last week to withdraw from a pact permitting Ukrainian agricultural exports.
The missile assault caused extensive damage to infrastructure, homes, and several buildings, including about 25 landmarks in the city’s historic center, a UNESCO World Heritage site.
Following Russia’s early withdrawal from the UN-mediated agreement last week, Ukraine is attempting to reestablish trade via the Black Sea route. However, questions arise regarding the feasibility of this goal.
As an interim measure, Ukraine is seeking alternative methods for exporting its grains, such as utilizing trains and barges.
Despite these challenges, the global buffer of wheat reserves remains sizable. Russia, the leading exporter, continues to distribute its robust harvest to international markets.
Under the agreement, approximately 33 million tons of crops were transported to global destinations, including about 17 million tons of corn and nine million tons of wheat. China was the primary recipient, followed by Spain, Turkey, Italy, and the Netherlands.
Meanwhile, in other regions, crops in parts of the US and southern Europe are under threat from insufficient rainfall and high temperatures, posing potential risks to food supplies.
