FX.co ★ Wheat Soars as Black Sea Tensions Escalate

Wheat prices rose more than 3% to about $6.70 per bushel on Friday, a three-week high, pushing weekly gains above 5%—the strongest advance since mid-July. The move followed reports of a Ukrainian strike on a Russian Baltic port and Moscow’s rejection of a proposed Black Sea truce, which reignited concerns about potential disruptions to grain exports.

Ukraine’s military said it targeted a gas condensate processing facility in Ust-Luga, heightening worries over the security of Russia’s export infrastructure even though no damage to grain facilities was reported. Earlier in the week, Ukrainian officials had reportedly proposed a halt to attacks on civilian targets in the Black Sea, but Russia refused the ceasefire proposal.

The situation poses substantial risks for global wheat supplies, as Russia and Ukraine together are projected to account for nearly 30% of world wheat exports in the 2026/27 season.