Wheat prices jump almost 8% after Russia row

Wheat prices rose as much as 8 per cent yesterday after Russia pulled out of a deal allowing grain shipments from Ukraine to reach global markets.

Both countries are key global suppliers of wheat, barley and sunflower oil with countries in Africa, the Middle East and Asia particularly reliant on them.

The market was disrupted by Russia’s invasion of Ukraine earlier this year.

But a UN-brokered agreement over the summer allowed safe passage for ships carrying grain from Black Sea ports, with more than 9m tons of supplies transported.

But the Kremlin suspended its participation in the deal over the weekend in response to what it called a major Ukrainian drone attack on its fleet. 

Ships carrying grain still sailed from Ukrainian ports yesterday, suggesting Russia had stopped short of re-imposing a blockade.

But shipments could be interrupted again if the collapse of the deal means insurers stop underwriting them.