Business & Economy

Prices rise after Russia’s suspension of grain export agreement

Moscow, Oct 31 (EFE).- The prices of wheat and corn soared on Monday by as much as 7.7% and 2.8% respectively after Russia suspended an agreement to allow grain exports from Ukraine through the Black Sea over the weekend.

The lifting of the agreement — key to alleviating the global food crisis and balancing the cost of food — led trade prices of wheat in Chicago to jump by 7.7% to $8.93 a bushel (a volume unit for dry goods) early Monday, before cutting gains to 5.6%, according to data from Bloomberg.

In Singapore, corn jumped by 2.8% and soybean oil by 3%.

If prices continue to increase, inflation and starvation could worsen globally.

Until October 24, the agreement had allowed the shipping of roughly 8.5 millions tonnes of grain and other foodstuffs from Ukraine, according to the UN’s Joint Coordination Centre in Istanbul.

The corridor, installed in July, put an end to the five-month blockade of Ukrainian ports by Russia and helped reduce the rise in prices.

However, on Saturday, Russia ceased its participation in the deal, which was due to expire on November 19, after accusing Ukraine of carrying out “terrorist” drone attacks on Black Sea Fleet ships.

Ukraine is one of the world’s top exporters of grains. After Russia’s full-scale invasion, wheat trade price reached a record high of $13.64 a bushel in March.

The support for Ukrainian exports is to be discussed on Monday during an informal meeting between European Union trade ministers and United States trade representative Katherine Tai in Prague. EFE


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