The threat of conflict between Russia and Ukraine continues to generate price volatility in world wheat markets. The week started with an optimistic view from traders that a diplomatic solution to the tensions could be found following a seemingly successful meeting between French president Emmanuel Macron and Russian president Vladimir Putin. This triggered a bout of selling on futures markets on Tuesday. However, later in the week, military exercises between Russia and Belarus led Ukraine to state its ports had been blocked by Russian navy activity, which halted commercial shipping operations. Speculative trading and panic buying took wheat futures sharply up to their highest prices in over two weeks. Following this period of panic, calm prevailed and most of the futures price gains were lost, highlighting how sensitive a matter this potential conflict is for grain markets.

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