Relief as Ukraine Begins Shipment of Grain Amid Russian Invasion

• There was respite on Monday, August 1, 2022 as the first shipment of grain left Ukraine since the country was invaded by Russia in February
• The shipment sent the prices of food tumbling on the international market as wheat prices also fell by 24 per cent
• Ukraine is one of the top producers and exporters of agricultural products in the world and the war in the country has sent global food prices soaring

Ukraine sent out the first consignment of grain on Monday, August 1, 2022, since Russia invaded the country in February which has sent the prices of wheat tumbling and raised hopes that the gesture will lower the surging global food prices.

The cargo ship, Razoni left for Lebanon with about 26,000 tons of corn, according to reports. This marked the first grain ship to depart the port of Odesa since February 24.

Prices of food decline

Ukraine’s Minister of Infrastructure, Oleksandr Kubrakov posted a video on Twitter which shows the ship leaving with its horn blaring.

There has been a decline in the prices of wheat since the United Nations, Turkey and Ukraine reached a truce on July 22 to reopen three ports in Ukraine whose grain has been lingering to be shipped.

September wheat Futures fell on Monday, August 1, 2022, by 2.4 per cent $788.50 a bushel on the Chicago Board Trade.

The Black Sea wheat prices fell last week at the beginning of the shipment deal, according to reports which also stated that prices quoted below $400 a tonne, including freight costs which also went down from $415 a tons some weeks ago.

According to the UN, the deal will allow the safe transportation of commercial foodstuffs and fertilizer from Ukraine’s Black Sea ports of Odesa, Chornomorsk and Yuzhny.

Reports say another 16 ships are waiting to leave Ukraine.

Effect of Russia's invasion of Ukraine on food prices

The war in Ukraine and the lingering effects of COVID-19 pandemic coupled with climate change are driving up food prices, energy and fertilizer, according to the World Food Programme.

The food price index from the United Nations averaged 154.2 points in June, which is an increase of 23 per cent from the year before, despite a third consecutive monthly fall.

The global prices of dairy and meat had also spiked while vegetable oils, cereals and sugar also witnessed a decline.

Ukraine is one of the world’s largest agricultural producers and exporters say the US Department of Agriculture and the invasion of Russia in the country has had a massive negative impact on food prices globally. The country was the fourth largest corn exporter in the 2021/2022 marketing year which accounted for 12 per cent of global exports.

Legit.ng weekly price check: Rice sellers groan as a bag sells for N32,000 in popular Lagos market

Recall Legit.ng reported that the rise and fall of food prices have become the new normal in Lagos market.

Whilst the politicians are busy with the forthcoming general election in 2023, traders and buyers are worried over the current market condition.

At the market this week, food prices have increased by over five percent as some are not even available.

Source: Legit.ng