Blocking wheat exports from Ukraine is forcing importers to pay more in cash

Published May 31, 2022

Tridge summary

Russia's ongoing conflict with Ukraine and the resulting blockade of ports and export routes are causing significant disruptions to global wheat supplies, potentially leading to famine and mass migration. Despite the urgency of the situation, international efforts to address the issue have been slow, with key importers only recently beginning discussions on potential military solutions to reopen blocked routes. The situation is further complicated by India's decision to restrict wheat exports, which has driven up prices on the physical market. Countries like Pakistan and Bangladesh have turned to Russia for wheat imports, despite sanctions, and India has received requests to supply over 1.5 million tons of wheat to several countries, including Bangladesh, which has set a record for wheat purchases this season.

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

Original content

Russia is not only fighting against Ukraine, but is destroying its economy by blocking ports and exports, and threatening the civilized world with famine and another wave of refugees due to disruptions in wheat supplies. The world community and international organizations, including the United Nations, should be more determined to block Ukraine's ports and routes in the Black Sea, but after 96 days of war and the threat of famine, the EU, US, UK and importing countries are just beginning to discuss unblocking options. including by military means. After the restriction of wheat exports by India, prices on the physical market rose sharply. The Pakistani agency TCP purchased 500,000 tons of food wheat (presumably Russian-made) at a tender in June-July for $ 515 / ton CIF. Despite international sanctions, the country's authorities have decided to import oil and foodstuffs from Russia, including 2 million tons of wheat in cash, as currency settlements are currently difficult. ...

Source: Graintrade