Análisis de Tridge
The Black Sea Grain Initiative Extended until May 2023
The Black Sea Grain Initiative was extended for 60 days on the 18th of March until May 2023. The deal has proven beneficial in easing global food shortages. As of March 2023, Ukraine has exported over 25 million mt, including 12.2 million mt of corn. Wheat shipments have totalled 6.7 million mt, with exports involving rapeseed, sunflower oil, sunflower meal, and barley making up the balance. The primary destinations have been China, Spain, Turkey, Italy, and the Netherlands. Following the escalation of the conflict between Russia and Ukraine in Feb-22, global wheat prices spiked, peaking in May 2022. For example, US wheat prices rose to USD 13.94 per bushel on May-22, a 48.8% YoY increase. The decision by Russia to extend the deal by 60 days has evoked mixed reactions. The extension will continue to alleviate food shortages and keep prices of commodities, such as wheat and corn, from spiking. On the other hand, Ukraine, Turkey, and the UN preferred an extension of at least 120 days, which would have provided ample time to clear the backlog of shipments from Ukrainian ports.
