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| Wheat prices have fallen for the first time since the Russia-Ukraine conflict. (Photo: getty images) |
Global wheat prices have fallen for the first time since a historic agreement between Russia and Ukraine on grain exports.
Friday's deal pushed wheat prices to their highest levels since the start of the Russia-Ukraine conflict.
Russia and Ukraine agreed on Friday to reopen Ukrainian Black Sea ports for grain exports Signed.
The historic deal will see Ukrainian grain exports restored while easing Russian grain and fertilizer shipments despite tough economic sanctions.
The Chicago Board of Trade recorded a 5.9 percent drop in wheat prices after about 27. The price of a kilogram of wheat has gone up to $7.59. For the first time since Russia's invasion of Ukraine in February this year, the price of wheat has returned to pre-fight levels.
Keep in mind that 30 percent of the world's wheat imports are produced by Russia and Ukraine.
Russian warships About 25 million tons of wheat and other grain shipments at Ukrainian ports were blocked.
Despite the immediate drop in wheat prices, analysts have expressed concern over the long-term adherence to the agreement.
Global Commodity Consulting President Michael Zuzulo questioned whether it would really be possible to deliver large amounts of grain under this agreement.
He said that due to drought conditions in some parts of Europe, the price of wheat may fall further. Not possible.
Apart from Russia and Ukraine, the US, Australia and Canada are the largest wheat exporting countries.
While Egypt, Indonesia, Nigeria and Turkey import the most wheat. There are only a few countries in the world that produce enough wheat for their own consumption and export the rest.
China is the largest producer of wheat, but it also has to import more wheat for its population of 140 billion.
Grain prices were higher even before Russia invaded Ukraine in February, which The main reason is the situation caused by the global epidemic of Corona.
However, after the attack of Russia on Ukraine, the prices of wheat increased further, which reached 400 euros per ton in the month of May in the European market. Wheat prices have doubled since last winter.
According to the Food and Agriculture Organization of the United Nations, more than 30 countries depend on Russia and Ukraine for about 30 percent of their wheat imports.
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| After the agreement, the ports will be opened for the shipment of grain. (Photo: AFP) |
Ukraine and Russia are the main sources of grain supply for European countries. Europe imports 30 percent of its food needs from these two countries.
Russia's navy has blockaded Ukraine's main ports on the Black Sea, preventing Ukraine from importing 25 million tons of grain. Which is lying in different ports or fields.
However, after Friday's historic agreement, the ports will be opened for grain shipments.
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