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            War and heat: Why are wheat prices soaring?

            Monday, August 31, 2026 - 18:27:57
            War and heat: Why are wheat prices soaring?
            Arya News - Russia and Ukraine have stepped up attacks on their respective grain terminals in the Black Sea as drought impact wheat production.

            Wheat prices have risen sharply amid disruptions to Black Sea exports as the Russia-Ukraine war continues and as changing weather patterns cause droughts that have sharply reduced production.
            Over the past month, Russia and Ukraine have stepped up attacks on each other’s grain terminals on the Black Sea. With Russia the world’s largest wheat exporter, and Ukraine among the top 10 grain-producing countries, these attacks have taken their toll on global wheat and grain supply.
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            Meanwhile, the rising temperatures and lack of rain have threatened to cut this year’s wheat harvest in South Africa’s Swartland, which produces about 20 percent of the country’s wheat.
            Here’s what we know:
            What impact is the Russia-Ukraine war having on prices?
            Over the past month, strikes on ports, vessels and grain facilities amid the Russia-Ukraine conflict have disrupted grain terminals and forced shippers to delay or cancel cargo loadings during the peak export season.
            While Russian missile attacks have impacted Ukraine’s grain exports, Ukraine’s drone attacks in the Sea of Azov have also sharply curtailed Russian shipments of both grain and wheat. At the same time, attacks on Russia’s Novorossiysk and Taman ports have increased shipping costs out of its Black Sea ports.
            According to Ukraine’s Ministry of Infrastructure, in July, Ukraine suffered 35 Russian attacks on vessels in port, 22 at sea and 67 on port facilities. By comparison, the total number of vessel strikes for the whole of 2025 was just 14.
            On Friday, Kyiv’s agricultural minister said recent Russian air attacks have destroyed around 90 percent of retailers’ food logistics. With transport of wheat curtailed, prices have risen, raising fears of food insecurity around the world.
            Joe Glauber, a research fellow emeritus in the director general’s office at the International Food Policy Research Institute, said that the issue, therefore, is less the amount of wheat being produced and more about the cost of getting it to buyers and consumers.
            “There’s plenty of wheat in Russia and Ukraine, and ultimately that wheat will make it out on to the market. But right now it can’t, or it comes out with a very high cost, and so wheat prices have reflected that,” he told Al Jazeera.
            “There’s a lot of wheat in the world…it’s not a question of availability, it’s a question of affordability,” he added.
            Egypt, the world’s largest wheat importer, usually spends around $3bn per year on importing wheat. In the first half of 2026, it sourced more than 82 percent of its stock from Russia and Ukraine.
            In Asia, second-largest wheat importer Indonesia bought $361m of wheat from Ukraine and $102m from Russia between 2023 and 2024, according to the Observatory of Economic Complexity. Indonesia usually sources between 15 percent and 20 percent of its wheat from the two countries.
            An official at Indonesia’s Flour Millers’ Association told Reuters last week that current stocks can meet immediate food-grade wheat requirements. “But we don’t have abundant or excess supply. We have to look at other origins such as Bulgaria, Australia, Romania and Argentina for cargoes that do not get shipped from Russia and Ukraine,” the official said.
            How does climate change fit into this?
            Besides the war in Ukraine, droughts and drier weather patterns have taken a toll on wheat production and contributed to rising prices.
            According to the United States Department of Agriculture (USDA), as of July 1, the US, also one of the biggest wheat exporters, is forecast to yield “46.7 bushels per acre, down 0.1 bushels from last month and down 8.2 bushels from last year’s average yield of 54.9 bushels per acre”.
            “If realised, the United States yield would be the lowest since 2015,” the USDA said.
            In a report updated on August 14, the department wrote: “This year’s small crop is a product of long-term decline in US wheat acreage and widespread drought impacts on HRW [Hard Red Winter wheat] production in the Great Plains States. Total wheat supplies are forecast down 13 percent from the previous year, with larger beginning stocks dampening the effect of the smaller crop.”
            For Canada, the world’s sixth-largest wheat producer, the USDA’s Foreign Agricultural Service found that for the 2026-2027 production year, total production is forecast to be 34.6 million metric tons (MMT) – also 13 percent lower than the year before – due to reduced planted area and a return to lower-than-average yields.
            Amid the heatwaves that have hit European countries over the past three months, wheat production in the bloc has also reduced. According to COCERAL, the European association of trade in cereals, oilseeds, rice, pulses, olive oil, oils and fats, animal feed and agrosupply, the excessive heat is expected to reduce grain crops in 2026 by around 9 million tonnes to 286 million tonnes.
            In a report published in July, COCERAL said: “The weather has started to affect corn pollination in the southern half of France and in Hungary. More damage is expected from the forecast heat in other parts of the EU.”
            The El Nino weather pattern is also expected to bring drier-than-usual conditions to the Southern Hemisphere this year, with South Africa and Australia expected to experience droughts as a result.
            What can be done to mitigate all this?
            While the Russia-Ukraine war continues, in July 2022, the year the war started, a Black Sea Grain Initiative was brokered to allow for the safe exports of grain, food and fertiliser from Ukrainian ports to stabilise and lower global food prices.
            While that agreement held, more than 1,000 ships full of grain and other foodstuffs left Ukraine, according to the EU. However, Russia ended the agreement in July 2023.
            The answer to the current crisis is far from easy, experts say.
            Bringing prices down now would necessitate a major shift in war strategy by both Russia and Ukraine, while the impact of climate change could be mitigated by governments implementing policies including improving water management on farms through the use of reservoirs to support drought-affected crops and reduce the loss of production.
            Moreover, Glauber explained, while alternative routes exist to ship out grain from Russia and Ukraine, they are costly, adding that a return to a possible Black Sea Grain Initiative “would help calm wheat markets a lot”.
            One answer may be for other countries to step in.
            According to Glauber, during the 2022 global grain price surge, other wheat producing countries such as India exported more to make up for shortages.
            “India, for example, had record exports in 2022. It’s probably less likely this year, just because of El Nino and other other factors affecting them, but they could also provide more wheat. I think the world wheat market proved very resilient in 2022, and I expect we’ll see the same in in 2026,” he said.

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