Continuing warfare between Russia and Ukraine is keeping uncertainty elevated in global wheat markets as attacks threaten transportation and agricultural infrastructure around the Black Sea. Russia and Ukraine remain major participants in the international grain trade, making disruptions in the region capable of quickly affecting wheat supplies and prices. Recent Russian attacks have increasingly damaged Ukrainian food warehouses and logistics infrastructure, disrupting domestic food distribution as well as adding uncertainty to agricultural supply chains. The Associated Press reports Russia has continued heavy missile and drone attacks on Ukraine, while Ukraine has responded with long-range drone strikes inside Russian territory, including attacks near the Black Sea port of Novorossiysk. The conflict comes after wheat prices already rose sharply during August amid concerns about Black Sea supplies and weather problems in other producing regions. For U.S. wheat producers, disruptions to competing Black Sea exports could improve export opportunities. However, volatility is expected to remain high as traders monitor shipping routes, ports and crop supplies.
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