As the Russia-Ukraine war continued to intensify, the U.S. wheat complex spiked upward. Added to that, smaller-than-expected corn and soybean crops have driven up their prices.
Russia-Ukraine war
“There was a report…that Russian President Vladimir Putin indicated he was looking to escalate the Black Sea conflict in Ukraine,” said Tim Lilja, analyst with Progressive Ag at Fargo, N.D.
As fall approaches, Russia has launched a series of missile and drone strikes, largely focused on the Ukrainian capital of Kyiv. In return, Ukraine has struck back with drone attacks on Russian oil facilities and other commercial targets. Both countries have repeatedly hit each other’s ports, in particular those for grain export.
Lilja said Russian grain exports through the Black Sea were dealt a severe blow when an Ukrainian attack left the port of Novorossiysk disabled for at least four months.
“It’s really painting a logistical nightmare in the Black Sea,” he said.
During the week ending Aug. 31, Turkey offered a proposal to Ukraine and Russia to resume Black Sea grain shipments, but the latter refused it.
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