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MarketsWheat

Wheat Soars as Black Sea Tensions Escalate

Wheat prices climbed more than 3% to around $6.70 a bushel on Friday, reaching a three-week high and bringing weekly gains to over 5%, the strongest performance since mid-July. The rally followed reports of a Ukrainian strike on a Russian Baltic port and Moscow’s rejection of a proposed Black Sea truce, reviving concerns over grain export disruptions. Ukraine’s military said it targeted a gas condensate processing facility at Ust-Luga, raising fresh worries about the security of Russia’s export infrastructure despite no reported damage to grain facilities. Earlier in the week, Ukrainian authorities had reportedly proposed halting attacks on civilian targets in the Black Sea, but Russia rejected the idea of a ceasefire. The risks are significant for global wheat supplies, as Russia and Ukraine are expected to account for nearly 30% of world wheat exports in the 2026/27 season.

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