Ukraine: 40% grain harvest disrupts markets

Ukraine's grain crop production is projected to drop by 40%, resulting in significantly lower than expected exports, according to the International Grains Council. This decline, along with reductions in the United States and India, contributes to a global drop in wheat production to 769 million tons. In contrast, Russia's production is expected to increase by 2.6%, accounting for about 48% of its total, which could disrupt the global market as Egypt, Turkey, Bangladesh, and Iran rely heavily on Russia and Ukraine for wheat supplies. The European Union's self-sufficiency in wheat varies, with the European Commission emphasizing the need to invest in agriculture to reduce reliance on foreign supplies. The blockage of Ukrainian sea ports is further exacerbating the situation by hindering the shipment of 20 million tons of cereals, affecting both developing and developed countries. The article also touches on the growing speculation and financialization of the agricultural commodity market, with concerns for farmers and consumers.