Global: -12% grain prices with green light for ships

World grain prices have experienced a 12% drop in the past week, driven by the green light for foreign cargo ships to pass through Mariupol by Russia and the new rail transport opportunities. This situation is attributed to the emptying of warehouses, containing over 20 million tons of cereals, as ships have been allowed to leave. This decrease in prices is coupled with speculative activities in the agricultural raw materials market, largely influenced by financial markets and strategies.

This development has significant implications for countries like Egypt, Turkey, Bangladesh, and Iran, which heavily rely on Russia and Ukraine for wheat supplies, as they face the risk of unrest and famine due to potential blockades. The European Union (EU) also faces challenges, with its self-sufficiency in agricultural production varying widely depending on the product. Italy, as a deficit country, imports a large portion of its wheat and corn needs, experiencing a reduction in domestic corn production by nearly one-third over the past decade. Coldiretti underscores the necessity for the EU to invest in agriculture to lessen its reliance on foreign countries and to prevent food blackmail. The company also emphasizes the urgent need for measures to reduce energy and production costs for farms and stables, as well as long-term planning solutions.