Wheat prices witnessed a sharp rise in global markets, after Russia announced that it would deal with ships heading to Ukrainian ports as military targets.
Wheat prices rose on the European Stock Exchange by 8.2%, bringing the price of one ton to 253.75 euros, while corn grain prices increased by 5.4%.
The value of US wheat futures jumped by 8.5% yesterday, “Wednesday”, which is the highest rate of increase in one day, since the start of the Russian military operation in Ukraine on February 24, 2022.
This rise comes a day after Russia withdrew this week from an agreement guaranteeing the safe passage of grain shipments through the Black Sea, as well as announcing that it would consider any ship sailing towards Ukrainian ports as a potential carrier of military cargo and a party to the conflict.
Meanwhile, Ukrainian Minister of Agriculture Mikura Solsky reported that the recent Russian air strikes destroyed 60 thousand tons of grain, and damaged a large part of the infrastructure for its export.
Last Monday, Russia announced its refusal to extend the grain initiative agreement, and linked the issue of extending it to the condition of removing all obstacles facing Russian banks and financial institutions.
On July 22, 2022, the Turkish city of Istanbul witnessed the signing of an agreement that guarantees the safe shipment of grain and foodstuffs stuck in Ukrainian ports due to the Russian military operation in Ukraine, with the mediation of Turkey and the UN.
Since then, the agreement has been extended several times, but Moscow announced on July 17 the suspension of its participation in it, which raised international fears of a global food crisis, especially since Ukraine is one of the largest grain suppliers in the world.
