Flood of Russian Wheat Halves World Prices From Wartime High
- Nation set to export record volumes of wheat for a second year
- Kremlin price floors fail to prevent slide in wheat market
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By Aine Quinn
September 16, 2023 at 1:00 PM GMT+8
Russia’s second consecutive bumper wheat harvest is reinforcing its position as the No. 1 exporter, but it’s also easing price pressures stemming from Moscow’s invasion of Ukraine.
The Kremlin’s war — including blockading and bombarding ports — has hobbled Ukraine’s food exports, helping cement Russia’s domination of the global wheat market. That’s reflected in record Russian shipments, as the nation’s traders overcome the financing and logistical challenges some faced in the aftermath of the invasion.
However, Russia’s overflowing grain ports have also yielded a silver lining for wheat consumers buffeted by a cost-of-living crisis: the lowest prices in almost three years. Despite the Kremlin’s efforts to exploit the situation — by shoring up wheat prices to replenish its own coffers — the Chicago market is trading at less than half the peak reached after Moscow first invaded.
