Black Sea conflict weighs on wheat after Sea of Azov attacks - The Western Producer
Rising tensions in the Black Sea, specifically attacks on shipping in the Sea of Azov, have caused a significant spike in global wheat prices. Analysts advise farmers to exercise caution as market volatility remains high due to disrupted export routes.
Why it matters
Russia is the world's largest wheat exporter, and disruptions to its supply chain threaten global food security and commodity price stability.
A view shows a grain terminal in the sea port in Odesa, as it was in 2022. Russia recently ramped up attacks on the city’s port facilities. SASKATOON — Canadian wheat farmers should take a wait and “sea” approach with today’s markets due to shipping turmoil in the Black Sea region, says a leading analyst.
“Probably don’t rush with your hedges right now because I think there is still some upside left,” said Andrey Sizov, managing director of SovEcon .
“But obviously, when we see a reversal, it could be brutal because the market really loves to sell those Black Sea rallies. It has happened many times in previous years.”
Nearby Chicago wheat futures were up $0.88 per bushel or 15 per cent as of midday today compared to the close on June 30.
Kansas and Minneapolis wheat futures have also rallied.
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