After six months of war in Ukraine, grain prices have fallen back from their peaks

Published 2022년 8월 24일

Tridge summary

The article provides an overview of the impact of the Russian invasion of Ukraine on the global agricultural market, with a focus on wheat and corn prices. It highlights the severe price hikes in wheat, peaking at double the summer prices, and the challenges in merchant traffic on the Black Sea. The easing of the crisis is attributed to reassuring production estimates in Europe and the resumption of Ukrainian exports, facilitated by a maritime corridor agreement with Russia. Despite these developments, prices remain high due to increased costs in energy, fertilizers, and transport, as well as the threat of inflation. The article also draws attention to the drought impacting corn production in the EU and the US, raising concerns about a potential supply problem, especially with China resuming its grain imports.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The worst-case scenario, with its feared UN "famine hurricanes", has been averted but prices remain very high and inflation threatens, market analysts point out. Wheat prices had soared to nearly 440 euros per tonne on the European market in mid-May - double last summer - while merchant traffic was almost at a standstill on the Black Sea. But they fell back to around 330 euros in August. "Six months after the Russian invasion, it's almost back to square one. The markets have learned to live with the crisis. The easing began at the end of May-beginning of June with first reassuring production estimates in Europe and the resumption of exports from Ukraine, first by road and rail, then by sea", explains Gautier Le Molgat, analyst at Agritel. Ukraine is "on track to export almost 4 million tonnes of agricultural products in August" across all channels, approaching the pre-war monthly over 5 million, a senior Department of Agriculture official said on Tuesday. US state. "Strong Ruble" ...

Source: Pleinchamp