Russian wheat export prices rise as Black Sea and Strait of Hormuz tensions escalate

Russian new-crop wheat with 12.5 percent protein was quoted at about $238 to $241 a tonne late last week, up from roughly $227 to $229 the previous week, according to consultancy Sovecon. Shipments from Russia's shallow-water Black Sea ports have been restricted since July 10 for safety reasons after drone attacks in the area.

In global trade, Chicago Board of Trade wheat rose on Tuesday, July 21, to around $6.87 a bushel, its highest since June 2024, before easing about 0.5 percent to near $6.79. Disruption to shipping through the Strait of Hormuz has added further cost and risk to freight.

Iran is one of the world's largest wheat importers and Russia is its top supplier, so higher Black Sea prices and freight rates raise the country's food import bill at a time of rial weakness.