Wheat prices remain high as concern grows about Black Sea instability and disruption to the grain supply.

Elender said despite the recent rise, grain prices are still lower than they were on the eve of Russia’s invasion of Ukraine in February 2022, partly because the deal was expected to end. . Moreover, Ukrainian grain exports have recently fallen in levels due to labor shortages due to the workers’ war, restrictions on fuel supplies and the loss of territory by Russia.

Ukraine is also increasing its exports by truck, train and river barge.

Dutch bank Rabobank said on Thursday that Ukraine would still likely be able to export most of its wheat, corn, barley and sunflower seeds through alternative routes. But this would put further pressure on ports on the Danube, which flows from Germany’s Black Sea into the Black Sea, making transportation costs more expensive and rail infrastructure at greater risk of Russian attack. said the memo.

“Rising transport costs mean that Ukrainian farmers are very likely to reduce their acreage in the future,” the memo said.

Ukraine is one of the world’s leading grain exporters and one of the world’s leading exporters of sunflower oil, and the agreement will allow Ukraine to resume exports of millions of tonnes of grain that have fallen since the invasion.

Since the initiative began, Ukraine has exported 32.9 million tons of grain and other agricultural products to 45 countries, according to UN data. Under this agreement, Russian naval vessels were allowed to pass through, which blocked Ukrainian ports following a full-scale Russian invasion.

Higher prices are expected to hit the world’s poorest hardest.According to the United Nations, Ukraine last year supplied more than half of the World Food Program’s wheat grains sent to people in Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen.

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