Grain Price Rises Due to Intensification of Conflict in Ukraine
Grain prices rose more than 4 percent on the Chicago stock exchange on Monday. Traders fear that grain exports from Ukraine across the Black Sea are threatened by the escalation of the war in the country. Grain prices have already risen by almost a fifth this year.
The prices of maize and soybeans also went up.
Russian missile strikes have taken place in Ukrainian cities across the country. The capital, Kyiv, was also attacked again for the first time since June. The explosions come two days after a major detonation near the Crimean Bridge, which connects the Crimean peninsula with Russia. Moscow blames Ukraine for that, so an attack on Kyiv could retaliate. Russian President Vladimir Putin will meet with his Security Council on Monday to discuss the attack on the bridge.
In July, the warring parties reached an agreement on the export of Ukrainian grain. That agreement, which Turkey and the UN-led, made it possible again to export Ukrainian grain by ship. Before that, a lot of Ukrainian grain was trapped in the ports on the Black Sea due to acts of war, leading to global famine concerns.
The Russians again attacked the Ukrainian port city of Odessa, an important hub for grain exports. The intensification of the fighting raises the question of whether the two sides will agree to an extension of the grain export agreement, which expires in a month.
Ukraine also accuses Russia of delaying tactics in the export of Ukrainian grain. For example, the inspection time of grain ships in Istanbul is said to have increased to ten to fifteen days. The first weeks of the grain deal were still five to six days. As a result, the number of ships waiting to transport grain to and from Ukrainian ports rose to a record 120 at the end of last week. Ukraine has called for more inspectors to be deployed, but Russia is reportedly unwilling to cooperate…