Global Wheat Buyers Brace for Supply Squeeze Amid Black Sea Attacks
Global wheat prices are up 6.5% this month as attacks shut more than 97% of Russia and Ukraine's grain export capacity, Reuters calculations show.
- Attacks on shipping have shut down more than 97 per cent of Russia and Ukraine's grain export capacity in the Azov and Black Sea basin, cutting off a major source of low-cost global supplies.
- Major Russian grain terminals in Novorossiysk, including NZT, NKHP, and KSK, suspended operations following Ukrainian drone strikes this week, while Ukrainian seaports in the Odesa hub ceased activity at the end of July.
- Global wheat prices have risen about 6.5 per cent this month and are roughly 30 per cent higher than a year ago, forcing importers in the Middle East, Africa, and Asia to seek higher-cost suppliers.
- Ukraine now relies on rail and Danube river ports for about 45 per cent of shipments each, with 10 per cent by road, while Agriculture Minister Taras Vysotskyi expects only 50 per cent of export potential if ports remain blocked.
- With no signs of de-escalation in the Black Sea region, pressure mounts to secure supplies as only a small facility in Tuapse with capacity of about 160,000 tonnes per month remains operational for Russian grain exports.
19 Articles
19 Articles
Global wheat buyers brace for supply squeeze amid Black Sea attacks
Russia will not be able to deliver 52 million tons of grain to buyers, Ukraine 34 million tons, notes Oxford Economics.
Global Grain Shipments Fall as Black Sea Attacks Escalate
Over the last five weeks (week 29-33) global grain shipments have fallen 8% y/y, fuelled by a 26% y/y drop in grain exports from the Black Sea as Russian and Ukrainian attacks on ships and port infrastructure have intensified.“A recent proposal…
Grain exports from Ukraine have largely come to a standstill as a result of Russian bombing of grain terminals in Ukrainian ports. Ukraine, in turn, is bombing Russian grain terminals. This, along with the drought and the closure of the Strait of Hormuz, means that food prices will rise sharply next year, says Freek Vossenaar, food & agro analyst at The Hague Centre for Strategic Studies. "Food inflation will reach 7 percent due to all these fac…
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