Russia wheat prices drop amid Black Sea export disruptions

A significant divergence is occurring between Russian domestic wheat prices and international market rates. While global wheat prices have reached their highest levels in over three years, prices within Russia have dropped due to export bottlenecks.

Despite a strong harvest expected to approach 140 million tons, Russian wheat is struggling to leave ports. Logistics in the Azov-Black Sea basin have been severely disrupted, with reports indicating that over 90 percent of grain export capacity in the region was once sidelined following attacks on infrastructure. Major terminals in Novorossiysk have seen operations halt, affecting approximately 25 million tons of potential exports.

This logistical crisis has caused domestic prices to plummet. In regions such as Rostov and Krasnodar, third-class wheat prices have fallen below $100 per ton, with some fourth-class wheat trading around $142 per ton. Conversely, international markets, such as the Chicago Board of Trade, continue to see elevated pricing as the global supply chain faces constraints.