Global prices for grains and oilseeds rose amid new attacks on Ukraine and Russia’s infrastructure in the Black Sea region, heightening concerns about the stability of global exports. Wheat prices rose the most, recovering from a sharp weekly decline, thanks to expectations of sufficient global supply, according to ProAgro Group.

Russia has intensified strikes on Ukrainian ports in the Odesa region, including the Pivdennyi port — the largest in the country. Over the weekend, the Allseeds transshipment terminal was damaged: on December 20, at least one person was killed in the attack, and large fires broke out on site. Thousands of tons of sunflower oil were destroyed, and critical infrastructure was damaged. The following night, a second strike destroyed 30 containers of flour and vegetable oil.

At the same time, Russia reported a drone attack on its own port infrastructure in Taman. Two tankers and two berths were damaged, along with a connecting pipeline and two storage tanks, creating additional risks for the export of grain, fertilizers, and petroleum products.

Ukraine and Russia remain key global suppliers of grain and sunflower oil, so the escalation of attacks could slow shipments. As a result, Chicago wheat futures rose by nearly 0.8%, rapeseed in New York increased by 2%, and palm oil in Kuala Lumpur also rose due to concerns over reduced sunflower oil supply.

Ukrainian President Volodymyr Zelensky, in his daily address, emphasized that the government is focused on the situation in the Odesa region. He described the attacks as an attempt by Russia to block Ukraine’s maritime logistics and urged the international community not to remain indifferent, stressing that further escalation threatens not only regional but also global food security.

As previously reported, grain exports in 2025/26 MY could potentially reach 49 million tonnes with a harvest of 81.4 million tonnes, according to the UGA.

Source: Bloomberg