Russia reneging on an UN-brokered deal to export Black sea grains is expected to affect shipments to countries dependent on imports, further worsening a global food crisis and spiking grain costs.
Tonnes of wheat amounting to hundreds of thousands booked for supply to Africa and the Middle East are now at risk following Russia’s withdrawal, and Ukrainian corn exports to other countries in Europe will also be hit, according to some experts.
Russia halted its participation in the UN grain deal indefinitely on Saturday after claiming that a massive Ukraine drone attack was incoming to its Black Sea fleet in Crimea.
On Monday Chicago wheat futures jumped to a record high, and corn hit a ten-year high as Russia’s invasion of Ukraine worsened a rally ignited by bad weather and COVID-19 supply disruptions.
Australia, a major supplier of wheat to Asia, is not expected to cover the supply gap for now as shipping slots have been booked well into February.
Turkey, Ukraine, and the United Nations have however proceeded to implement the Black Sea grain deal and agreed on a transit strategy for 16 vessels to advance forward on Monday despite Russia’s withdrawal.
