World grain market might be affected by Russian-Ukraine conflict
Russia
Ukraine
Published Jan 26, 2022
Tridge summary
Rising tensions between Ukraine and Russia are expected to disrupt grain export from the Black Sea region, especially wheat. Analysts project prices to react correspondingly.
Original content
Russia's potential military invasion of Ukraine would affect many markets, from wheat and energy prices, sovereign dollar bonds of the region to safe have assets, Reuters reports. It is expected that any suspension of grain shipments from the Black Sea region would likely affect prices and further stimulate food inflation at a time when the affordability of food is causing serious concerns around the world following the economic disruption caused by the COVID-19 pandemic. Four largest global exporters — Ukraine, Russia, Kazakhstan and Romania — export grain from ports on the Black Sea, which could face disruptions due to any military action or sanctions. As per projections, Ukraine may well be the world's third-largest exporter of corn in the 2021/22 season and the fourth-largest exporter of wheat, according to the International Grains Council. Russia dominates wheat exports globally. "Geopolitical risks in the Black Sea region have soared in recent months, posing a potential ...
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