Since Moscow’s unilateral suspension of the Black Sea Grain Initiative, which allowed for the export of food from Ukrainian ports, not a single ship has dared to load grain, causing a sudden rise in prices on the European market.
Two days after Russia refused to restart a seaborne agricultural export deal with Ukraine that included nearly 33 million tonnes of grain a year, markets surged.
On Wednesday, the price of food wheat rose sharply to 253.75 euros per ton at the end of September on Euronext, up 8.2% overnight to a level not reached since early April.
Corn has risen in price by 5.4%, which is slightly below the mark of 250 euros per ton, set in August.
On Monday, the market did not quite believe that this was a “serious story”, but reacted immediately as soon as it became known about the suspension, possibly temporary, of the sea route that provided half of Ukrainian exports, according to Andriy Sizov, SovEcon.
But since then, Russian air strikes on Odessa and Chernomorsk, two of three Ukrainian ports in the corridor, have intensified, and news of a “suspension” of risks in the Black Sea by insurers has clouded the outlook, said Damien Vercambre, broker at Inter-Courtage.
Earlier this month, Russia said it saw no reason to extend the deal, suspending it on the grounds that the sanctions it is facing over its aggression against Ukraine prevent it from fulfilling the part of the pact that should also guarantee Russian food and fertilizer exports. .
Author: Portuguese
Source: CM Jornal
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