World wheat prices fall 10% after Putin's statement on Ukrainian ports
Russian President Vladimir Putin assures grain shipments from Ukrainian ports if Kiev cooperates.
World wheat prices have dropped by 10% after Russian President Vladimir Putin stated his willingness to assure grain shipments from Ukrainian ports if Kiev clears them of mines, according to the Italian agricultural producers' group Coldiretti on Saturday.
According to Coldiretti, who cited Chicago Board of Trade data, the price of wheat futures at the close of trading was $10.4 per bushel, a 10% drop in three days. In the meantime, corn prices decreased 6.4% to $7.27 per bushel.
"The exit of ships from Black Sea ports means the emptying of Ukrainian warehouses, in which there are over 20 million tonnes of grain, including wheat, barley, and corn intended for export to both rich and poor countries, where a blockade may cause unrest and hunger," the association said in a statement.
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According to Coldiretti, Egypt, Turkey, Bangladesh, and Iran are the countries most reliant on Russian and Ukrainian grain supply, purchasing more than 60% of the total. Lebanon, Tunisia, Yemen, Libya, and Pakistan also belong to the group.
At the same time, observers emphasized that the price cuts had little to do with resolving obstacles. According to Coldiretti, the reduction is attributed to increased interest in the speculative market for agricultural products.
On Friday, Russian President Vladimir Putin told the Russian news channel Rossiya 24 that there were no hurdles to Ukraine's grain exports. Ships transporting wheat would be able to depart the Black Sea without incident if Kiev clears mines from ports, according to the Russian leader.
In a phone chat last week, Putin informed Italian Prime Minister Mario Draghi that Russia was ready to contribute considerably to overcoming the food crisis by exporting grain and fertilizer if the West removed politically motivated limitations. The Russian leader also emphasized that the situation in the food sector has deteriorated as a result of US and EU sanctions placed on Russia.