Wheat futures rise toward $7.40, set 3-year peak

Wheat futures climbed toward $7.40 per bushel in late August, hitting its highest level since June 2023, as the escalating Russia-Ukraine war fueled concerns over further disruptions to supplies from one of the world’s key grain-producing regions.

Russia is set to ramp up attacks on Ukraine, including infrastructure strikes, after concluding that peace talks have reached an impasse.

Russia and Ukraine account for more than a quarter of global wheat exports, raising fears of renewed food-price pressures amid elevated energy and transport costs stemming from Middle East conflict.

Ukraine’s agricultural exports are already expected to fall by more than half this season from previous estimates, while Russian wheat exports are projected to drop over 50% in August from a year ago.

Adding to upward pressure on prices, US wheat export inspections fell to 425,668 metric tons in the week ended August 20, from 514,363 tons a week earlier and well below the 1.05 million tons recorded a year ago.