Wheat hits two‑year highs amid Black Sea port closures from Russia‑Ukraine war

The ongoing Russia‑Ukraine conflict has intensified attacks in the Sea of Azov, leading to the complete closure of the Russian ports of Taman and Novorossiisk. These ports handle a quarter of Russia's wheat shipments, and their shutdown is constricting the flow of grain from the Black Sea region.

Consequently, wheat futures in Chicago rose more than 3% to a two‑year high above $7 per bushel, while prices on the Euronext reached roughly €245 per tonne, a 16% increase in two weeks. Analysts attribute the rally also to a severe heatwave across western Europe and the smallest U.S. wheat harvest in over 50 years. Related commodities such as canola have approached three‑year price highs, reflecting broader concerns about global grain supply and demand.

The supply squeeze is expected to impact major importers, including Egypt, Turkey and sub‑Saharan African nations, which rely heavily on Russian and Ukrainian wheat exports.