Wheat prices hit a 9-year high after Russia's invasion of Ukraine
Grain prices worldwide are soaring on news of Russia’s invasion of Ukraine. Wheat prices have surpassed a nine-year high as traders fear the military action could disrupt exports from both countries.
Russia, Ukraine and the United States are all top wheat exporters. The invasion will likely disrupt Black Sea trade routes. Right now, U.S grain producers are benefiting.
Farmer Tryg Koch, President of the Montana Grain Growers Association, says news of the invasion is, on a human level, saddening. But Koch adds wheat prices are now hovering around $10 a bushel, about $3 higher than a year ago.
"There’s only been a handful of times that we’ve sold wheat at the $10 level. You know, you get $10 wheat, it’s good.”
It’s unclear how the war will affect prices longer term. And Mother Nature is a wildcard as a megadrought tightens its grip on the American west.