Wheat prices jump following collapse of major dam in southern Ukraine (AP News)
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“Global prices for wheat and corn soared Tuesday after a major dam in Ukraine collapsed, renewing market fears about the fragility of the country’s ability to ship food to Africa, the Middle East and parts of Asia as it fights a war with Russia.”
“Anytime this war shows signs of getting further escalated, there’s a lot of concern,” said Glauber. “Markets react to that.”
Commenting on the potential implications for the continuation of the Black Sea Grain initiative, a major agreement brokered by the U.N. and Turkey last year allowing food moving through the Black Sea, Glauber said: “People are going to be watching to see what happens with the agreement. This reminds everyone that it’s not just pro forma, that this could be a very serious development if indeed the agreement is broken.”
There are massive agricultural fields in southern Ukraine where the dam burst, and while the collapse has endangered crops in the path of the floodwaters, according to Glauber less wheat has been planted in that area because it’s near the fighting and a lot is growing elsewhere.