Wheat prices rising following escalation in Ukraine

11 October 2022, 04:55 PM
The price of wheat rose to a three-month high (Photo:Paolo Galasso/Alamy via Reuters)

The price of wheat rose to a three-month high (Photo:Paolo Galasso/Alamy via Reuters)

Wheat prices rose sharply due to the recent escalation of the war in Ukraine and concerns over grain shipments across the Black Sea, Ukrainian news agency Interfax-Ukraine reported on Oct. 11.

Chicago SRW Wheat Futures spiked 6.6% on Oct. 10, to $9.38 per bushel – the highest since June 23, according to Dow Jones Market Data.

“Uncertainty about the availability of existing wheat supplies from Russia and Ukraine is driving prices up, while the headlines are fueling this uncertainty,” said Sal Gilberti, investment director at Teucrium Trading.

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In addition, Australia is facing flooding in New South Wales, which has partially affected wheat-growing areas and could reduce this season's harvest, Darin Newsom, head of Darin Newsom Analysis, added.

Although global food prices have somewhat declined after peaking in the summer, world leaders and the UN remain concerned that soaring costs – an increase of 7.9% YoY – could imperil food security in a number of African and East Asian countries, precipitating humanitarian crises and regional instability.

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