Article
Global wheat prices up by almost 6%
Published: 03/11/2022
Global
wheat prices recently rose sharply following Russia’s withdrawal from the Black
Sea grain export deal. The most active wheat contract on the Chicago Board of
Trade jumped 5,9% to US$8,78 per bushel, after hitting a high of US$8,93 per
bushel earlier. Maize and soya bean prices have also risen, but to a lesser
extent with maize futures up 1,2% and soya bean futures climbing 1,3%.
These
increases come after Russia announced that it was suspending its involvement in
the Black Sea Grain Initiative, which allowed vital agricultural products to be
exported from several Ukrainian ports. Ukraine’s foreign ministry said that
Russia had suspended its participation in the grain deal on “a false pretext of
explosions 220km away from the grain corridor” and that by doing this, it was
blocking “two million tons of grain on 176 vessels already at sea.”
Ukraine’s
president said Moscow’s withdrawal from the grain initiative, which was due to
be renegotiated in November, would exacerbate a global food crisis with
countries in Africa, particularly Ethiopia, at risk of a severe famine.– CNBC