Wheat prices have soared further after the Kremlin threatened to attack ships carrying grain to Ukrainian ports.

US wheat futures rocketed by 8.5pc on Wednesday, their biggest daily rise since just after Russia’s invasion of Ukraine.

Russia’s Ministry of Defense warned that all vessels in the Black Sea heading to Ukrainian ports would be considered potential carriers of military cargo starting Thursday.

It comes the day after official data showed consumer price inflation in the UK cooled from 8.7pc in June to 7.9pc in May, a larger drop than expected. Food price inflation cooled from 18.4pc to 17.4pc, according to the Office for National Statistics, but the rise in wheat prices will bring new upwards price pressure.

The warning came just days after Russia ended the Black Sea grain deal that kept Ukrainian exports flowing through the corridor. Ukraine’s Black Sea ports are a vital artery for its sales abroad — historically accounting for the bulk of shipments — and the harvest season is now underway. The corridor’s closure could slow the next crop getting to market.

Reduced availability of grain from Ukraine means less export availability during the crucial Black Sea harvest period, said Dennis Voznesenski, a senior agriculture analyst at Rabobank Group in Sydney. 

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