Wheat prices are surging
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The price of wheat is soaring — trading at levels last reached in early 2023, when markets were climbing down from the price shock of Russia's invasion of Ukraine.
Why it matters: Escalating tensions in the war are again pushing up prices for this critical grain.
Zoom in: Attacks on Black Sea ports, grain terminals and commercial vessels since July have disrupted grain exports in the region — together Russia and Ukraine are responsible for 27% of global wheat exports, S&P notes.
- Exports from those countries are effectively at a "standstill," the International Grains Council reported.
- Chicago wheat futures — the global benchmark — are up about 30% since the beginning of July.
What to watch: How the rise in wheat futures impacts global food prices.
The big picture: War and extreme weather are already driving up food prices this summer: The United Nation's cereal price index — a measure of global prices for critical food commodities — was up 3.4% in July from the previous month.
Reality check: Prices are still well off the heights of 2022, at the start of the war.
- Americans don't rely on Russia and Ukraine for wheat — the U.S. is a major wheat producer and exporter, but it. does import a small share of its supply, mainly from Canada.
The bottom line: Tensions in Russia's war with Ukraine are disrupting the global market for wheat.
