Goldman: Black Sea Attacks Push Wheat Up 12% and Corn 15%

Goldman Sachs Research stated that increasing attacks on export ports and commercial vessels in the Black Sea are disrupting global grain shipments, according to Chinese platform Guandian.

Wheat prices have risen about 12% and corn about 15% since early July, according to the research. Russia and Ukraine together account for nearly 30% of global wheat exports and 16% of corn exports.

The greatest pressure falls on importers in the Mediterranean and Middle East regions, particularly Egypt and Turkey, which rely heavily on grain imports to secure their food supply, while Polish railway and Baltic port alternatives are described as less efficient.

This implies higher transportation costs and landed costs for commodities, threatening the food import bill of importing Arab nations and increasing pressure on bread and basic staple prices.

What do these terms mean?

Black Sea: A body of water surrounded by several countries including Russia, Ukraine, and Turkey, serving as a major corridor for grain and energy exports.

Food Security: A nation's ability to stably secure its population's food needs, which is impacted by supply chain disruptions and rising prices.

Landed cost: The final price of a commodity upon reaching the importer, including purchase price, shipping, insurance, and fees.