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Monday, 19 October 2026dailybeirut.com
Economy
Global wheat prices rose after weekend clashes between Russia and Ukraine weakened hopes for a deal to resume exports from the two major producers.
Prices for wheat increased following renewed hostilities between Russia and Ukraine over the weekend, which dampened expectations of an agreement to restart shipments from both nations. As two of the world’s largest wheat producers, disruptions in their export capabilities have heightened market sensitivity.
The most active Chicago wheat futures contract gained 0.8% on Monday, rebounding after hitting its lowest point since August. This rise followed earlier indicators suggesting Russia might ship part of its harvest via Baltic Sea ports, alongside reports that major exporters like Australia could see abundant yields within weeks. According to Bloomberg, these factors had previously eased supply fears before the latest escalation.
However, the resurgent tensions cast doubt on the near-term availability of Black Sea wheat exports. This uncertainty signals potential global supply shortages as buyers scramble for immediate alternatives. The situation underscores the fragility of grain logistics in the region.
Arabic grain markets are bearing significant costs due to geopolitical crises and disturbances at Black Sea ports. These disruptions have driven up shipping and insurance expenses, prompting large importers—led by Egypt—to shift purchases to European ports at higher prices. This trend reflects the broader economic ripple effects of the conflict on regional food security.
Ukrainian President Volodymyr Zelenskyy stated on Sunday that attacks on substations caused power outages for tens of thousands of people. Meanwhile, Russian authorities reported emergency teams working to extinguish a fire at an oil terminal in St. Petersburg.
In an interview with Bloomberg, Zelenskyy revealed he is discussing the possibility of establishing a Black Sea export corridor with Turkey, Egypt, and India. He noted that Russia currently opposes this idea. Denis Voznesensky, an agricultural economist at the Commonwealth Bank of Australia, observed that Australian wheat prices are supported by strong expected or current demand for substitutes to Black Sea imports.
The average price of wheat across five of the country’s largest grain ports reached its highest level since June 2024 on Monday, driven by increasing demand for alternative export sources. "The focus remains on Ukraine and Russia," Voznesensky added.
At 12:38 p.m. Singapore time, wheat prices rose 0.6% to $6.645 per bushel. Soybeans increased 0.2% to $12.785 per bushel, while corn prices fell 0.2%.
