Russia tightens its grip on world wheat supply

Russia has strengthened its grip on the global wheat supply following its invasion of Ukraine, seeking to secure political support and hard currency. With a rising wheat crop in fertile regions such as the North Caucasus, Russia is estimated to be the source of one in five loads of exported wheat in the season beginning July 1, according to the U.S. Department of Agriculture. Ukraine, on the other hand, will see its share reduced to about 5% due to long-term damage to production caused by minefields and broken logistics chains. Russia's growing market power is part of a broader effort to exert control. International companies such as Cargill Inc. have exited the market after facing pressure to make way for domestic companies. These changes give more control into local hands and could facilitate the shipment of grain grown in occupied Ukrainian territory, as well as allow Moscow to influence prices. Russia's wheat strategy follows a familiar pattern: gain market share and then use that influence to exert power