Chicago: wheat futures surged above the $12-per-bushel in early March, a level not seen since March 2008 as the Russian invasion of Ukraine triggered supply disruptions from two of the world’s largest producers.
Amid heavy sanctions and restrictive measures from western economies, exports from the Black Sea have nearly halted. Multinational food companies such as Bunge and ADM have closed facilities in the region, while the world’s biggest container ship operator, Maersk/MSC, suspended service to Russian ports.
At the same time, the Ukrainian military suspended all commercial operations from Ukrainian ports. Such supply disruptions came on the heels of an already tight market with wheat stocks in major exporting countries at low levels.