The blockage of exports has contributed to a notable increase in agricultural commodity prices observed since the war started. The aim of the 'grain deal' signed between Kyiv and Moscow on Friday was to change this. | Fin24
Therefore, however marginal, a potential decline in the prices of these commodities would be positive for importing countries – and ultimately consumers., 90% of which is wheat and 6% is sunflower seed. The major importing countries are Egypt , followed by Sudan, Nigeria, Tanzania, Algeria, Kenya, and South Africa.. About 48% of this was wheat, 31% maize, and the rest included sunflower oil, barley, and soybeans.
A resumption of the trade activity would release about 22 million tonnes of grains out of Ukraine. It’s also safe to assume that grain orders from Russia to various markets in the world will also increase. Africa’s biggest wheat importers would benefit the most from a resumption of shipments out of Ukraine’s ports. More generally, the softening in prices would benefit consumers across the world.
In addition, the World Food Programme will be able to source food for donations in struggling African regions, such asOne can’t miss the fact that Ukrainian farmers would benefit too. They have been worried that, without a resumption of trade, their crops would rot in silos. The deal signals hope for some relief, and the prospect of creating space to store the new season crop.There’s still a great deal of uncertainty around the deal in the wake of the Russian following the.