Wheat markets surge after Russia attacks grain terminals

Russian attacks on ports and the threat of attacks on vessels in the Black Sea have caused global wheat markets to spike, rising to a new three-month high.

The Ukrainian agricultural ministry said Russia had launched attacks on grain terminals at ports in Odesa and Chornomorsk.

At Chornomorsk, 60,000t of grain was destroyed in one attack.

See also: Hot weather hits yields in EU and grain deal suspended

London wheat futures peaked at £214/t on 19 July for the November contract, the highest price point since mid-April.

Simon Wilcox, Cefetra farm grain origination manager, said the markets had been “spooked up” by Russia’s threats to attack vessels in the Black Sea from 20 July onwards and the attacks on ports, with prices already up another £5/t this morning (20 July).

Mr Wilcox urged farmers to take some cover and lock in wheat at these current prices while there is a margin in it for them, as it is uncertain how prices will change.

Prices in the US have also shot up, and US wheat futures rose 8.5% following the attacks.

Chicago wheat futures increased by $21/t (£16.25/t) on 19 July compared with the previous day, totalling $267.4/t (£206.85/t) for the September contract.

Ukraine’s minister of agrarian policy and food, Solskyi Mykola, said the infrastructure of international and Ukrainian grain traders and carriers such as Kernel, Viterra and CMA CGM Group suffered the most.

Mr Mykola said it would not only be the Ukrainian economy that suffers, but the economy of the entire world.

“The price of grain will rise, and not all countries will be able to afford the purchase of agricultural products. It means that the price for food such as flour, cereals and meat will rise considerably,” he added.