In Ukraine, silos are bursting from 15 million tons of corn from the fall harvest, most of which should have reached world markets but is hard to get to buyers because of the war Russia has started. Meanwhile, markets are preparing for new shocks as supplies from Ukraine and russia, which together account for about a quarter of global grain trade, become increasingly difficult and provoke food shortages.
ProAgro Group reports this, citing a Bloomberg article.
Ukraine is one of the world’s largest exporters of corn, wheat and sunflower oil, supplies of which are now largely suspended. Grain exports are now limited to 500,000 tons a month, compared with 5 million tons before the war. Grain from Russia is still coming in, but questions remain about the delivery and payment of future shipments, the agency notes.
Disruptions in the flow of grains and oilseeds, staples for billions of people and animals around the world, are driving up prices. Countries that fear potential food shortages are trying to find alternative suppliers.
Whereas alternative suppliers offer more expensive freight, longer transit times or lower quality, further accelerating food inflation.
The United Nations has warned that food prices, already at their highest levels, could rise another 22%. And a significant drop in Black Sea exports could lead to 13.1 million more people becoming malnourished, increasing global hunger in a world still recovering from the pandemic.
