The world’s food security is at stake as Russia exits grain deal (Bloomberg)
- Impact Area
Bloomberg, in its “Markets” section, wrote that traders are bracing for a fresh spike in grain prices after Russia’s exit from a deal allowing Ukraine crops to move from the Black Sea port. The sudden move by Russia has left leaders scrambling to rescue the UN-and-Turkey-brokered agreement credited with saving vulnerable populations from the risk of starvation.
Crop futures aren’t likely to climb as dramatically as they did in March, partly because it’s already known that Ukraine will fall far short of its full output potential this year. IFPRI senior research fellow David Laborde said, “Other producers have adjusted.” Still, grain prices could potentially rise between 5 and 10 percent in the coming days as markets “absorb the bad news,” he added.