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	<title>brews &#8211; Finance News Today</title>
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		<title>&#8216;Perfect storm&#8217; brews for global food supply as grain prices soar</title>
		<link>https://financenews.one/2026/08/21/perfect-storm-brews-for-global-food-supply-as-grain-prices-soar/</link>
		
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		<pubDate>Fri, 21 Aug 2026 08:11:48 +0000</pubDate>
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					<description><![CDATA[<div style="margin-bottom:20px;"><img width="1920" height="1080" src="https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na.jpeg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na.jpeg 1920w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-300x169.jpeg 300w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-1024x576.jpeg 1024w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-768x432.jpeg 768w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-1536x864.jpeg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /></div>In an aerial view, farmers use combine harvesters to harvest a wheat field near the city of Bila Tserkva on August 4, 2023 in Kyiv Oblast, Ukraine. Ed Ram &#124; Getty Images News &#124; Getty Images Russia and Ukraine continue to attack one another&#8217;s port infrastructure, blocking shipments from the &#8220;breadbasket of Europe&#8221; and driving [&#8230;]]]></description>
										<content:encoded><![CDATA[<div style="margin-bottom:20px;"><img width="1920" height="1080" src="https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na.jpeg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" srcset="https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na.jpeg 1920w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-300x169.jpeg 300w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-1024x576.jpeg 1024w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-768x432.jpeg 768w, https://financenews.one/wp-content/uploads/2026/08/108351995-1787215957783-gettyimages-1576431047-na-1536x864.jpeg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /></div><p> <br />
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<p>In an aerial view, farmers use combine harvesters to harvest a wheat field near the city of Bila Tserkva on August 4, 2023 in Kyiv Oblast, Ukraine. </p>
<p>Ed Ram | Getty Images News | Getty Images</p>
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<p>Russia and Ukraine continue to attack one another&#8217;s port infrastructure, blocking shipments from the &#8220;breadbasket of Europe&#8221; and driving up wheat prices, and adding to a grim cocktail of factors afflicting global food supply. </p>
<p>The two vast nations are estimated to produce around a quarter of the world&#8217;s grain exports. The warring countries exported nearly 100 million metric tons of grain between them in the year to June, according to customs figures, with shipments largely continuing to flow since Russia&#8217;s full-scale invasion in 2022 thanks to diplomatic agreements to protect global food supplies.</p>
<p>Recent <a rel="nofollow" href="https://www.cnbc.com/2026/08/13/ukraine-russia-novorossiysk-grain.html">military strikes</a> on grain export facilities, oil tankers and vessels in the Black Sea region have now made it too challenging for shipping firms to get insurance, meaning many are avoiding its ports. Alternative land routes for Ukrainian grain are also being stymied by low water levels on the Danube river, and by rail maintenance in Eastern Europe.</p>
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<div class="flourish-embed flourish-chart" data-src="https://www.cnbc.com/2026/08/21/visualisation/30016673"><noscript><img decoding="async" src="https://public.flourish.studio/visualisation/30016673/thumbnail" width="100%" alt="chart visualization"/></noscript></div>
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<p>Agricultural shipments are being disrupted not just by conflict on the Black Sea but also by the blockade of the <a rel="nofollow" href="https://www.cnbc.com/2026/06/19/hormuz-relief-may-not-ease-the-economic-toll-thats-already-baked-in-analysts-warn.html">Strait of Hormuz</a> and by the depletion of waterways such as <a rel="nofollow" href="https://www.cnbc.com/2026/08/05/drought-rhine-danube-water-levels-economy.html">Germany&#8217;s Rhine</a>. </p>
<p>Ongoing obstruction of those waterways is helping drive up the price of agricultural products such as fertilizer — and adding to farming woes in the process. </p>
<p>Soaring costs for farmers around the world, from fertilizer and <a rel="nofollow" href="https://www.cnbc.com/video/2026/08/19/record-diesel-margins-threaten-higher-inflation-and-consumer-costs.html">diesel</a> to labor, will further jeopardize food security if many decide they simply cannot make the money they need, analysts warn.</p>
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<h2 class="ArticleBody-subtitle"><a rel="nofollow" id="headline0"/>Profit problem </h2>
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<p>Higher fertilizer prices have become &#8220;structural&#8221; and are here to stay, CoBank&#8217;s lead economist Jacqui Fatka wrote in a note last week, with key chemicals in tight supply due to the Middle East conflict. </p>
<p>U.S. farmers are conscious that under-fertilization can prove more costly than higher input prices if they sacrifice crop productivity, Fatka said — a balance that is becoming increasingly precarious as they exhaust other options for optimizing yields.</p>
<p>&#8220;Cash is tight at the farm gate, limiting some growers from locking in any product for the next crop year until additional financing or working capital becomes available,&#8221; she wrote. </p>
<p>In Europe too, there is a fear that farmers in Russia, Ukraine and beyond will not plant much this winter because of profitability concerns and an inability to get financing, trade and agriculture analyst Noel Fryer told CNBC. </p>
<p>&#8220;A lot of things will come together to seriously affect crops next year,&#8221; Fryer said on Thursday.</p>
<p>&#8220;We&#8217;ve had crops decimated by weather in Europe and the U.S. A searingly hot summer in Europe has eroded grazing potential, with no hay and grass for cattle. A possible result of that is significant herd liquidation,&#8221; he said. </p>
<p>&#8220;We&#8217;ve got no end in sight to the Black Sea problem. The issue with fertilizer since the start of&#8230;</p>
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<p><br />
<br />Read More: <a href="https://www.cnbc.com/2026/08/21/grain-price-russia-food-supply.html">&#8216;Perfect storm&#8217; brews for global food supply as grain prices soar</a></p>
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