Wheat prices jumped by almost 8% after Russia withdrew from the agreement on the supply of grain from Ukraine
Wheat prices rose by 8 percent yesterday after Russia pulled out of an agreement that allowed Ukraine to supply grain to world markets.
Both countries are key global suppliers of wheat, barley and sunflower oil, with countries in Africa, the Middle East and Asia particularly dependent on them.
The market was disrupted by Russia’s invasion of Ukraine earlier this year.
Ships carrying grain were still leaving Ukrainian ports yesterday, suggesting Russia has failed to lift the blockade
But a U.N.-brokered deal in the summer allowed safe passage for ships carrying grain from Black Sea ports with more than 9 million tons of cargo.
But the Kremlin suspended its involvement in the deal over the weekend in response to what it called a major Ukrainian drone attack on its fleet.
Grain ships were still leaving Ukrainian ports yesterday, a sign that Russia has not refrained from reimposing the blockade.
But supplies could be cut again if the breakdown of the deal means insurers stop guaranteeing them.