Market worries about Black Sea grain corridor (The Western Producer)

The Western Producer (Canada) interviewed IFPRI senior research fellow Joseph Glauber for an article exploring what might happen to grain prices if the Black Sea Grain Initiative is not renewed.

Glauber noted that world corn prices increased by six percent and wheat prices rose by three percent when Russia temporarily suspended the Black Sea Grain Initiative in November 2022.

He also said it is remarkable that the United Nations was able to broker a deal to move Ukrainian grain through three Black Sea ports during an active war. Still, there are lags. Grain shipped out of Odesa’s ports must be inspected in Istanbul, Turkey, before heading to markets around the world. This has created huge additional export costs.

Glauber said all the grain shipped out of Ukraine’s Odessa ports must be inspected in Istanbul, Turkey, before heading to markets around the world. That is creating huge additional export costs. Farmers are also shipping grain over land through the country’s western border. Those “solidarity lanes” are also adding about US$200 per tonne to shipping costs.

He believes that 2023 will be worse than 2022 for Ukraine’s agriculture sector.

Read the entire article.