Source: Bloomberg
Aine Quinn, Megan Durisin, Michael Hirtzer
Wheat Futures has soared by 9%, the largest increase in 2012. Before that, Russia issued a warning of the ships to the port of Ukraine, which exacerbated the risk of the outbreak of grain exports in the Black Sea area.
The Russian Ministry of National Defense said that since this Thursday, all vessels to the port of Ukraine will be regarded as possible transportation of military supplies. Russia will treat the flag country as a country where the conflict is in the Ukrainian side.Chicago wheat futures rose daily.The Paris market's wheat closed up 8.2%, the largest increase since February 2022.
A few days ago, Russia unilaterally announced an agreement that allowed Ukraine to export grains through the Black Sea safe corridor.The latest situation on Wednesday exacerbated the risk of war in the region. The hope of Ukraine's restoration of food exports was shattered, and international food supply faced greater uncertainty.
"We have expected that the Black Sea agreement cannot continue to be implemented, but now the situation has been upgraded." Michael Magdovitz, a senior analyst in London in the Netherlands, said, "When Ukraine crops are about to usher in the harvest season, the export channelsclosed".
Ukraine's port in the Black Sea is an important channel for its grain exports.Although the country can still transport food through inland rivers, highways and railways, this approach is far more troublesome than transportation from Shenzhen -Hong Kong Port, and the cost is much higher.The closure of the Black Sea Corridor may weaken the upcoming harvest.
Russia and Ukraine account for a large part of the world's agricultural exports.In recent years, these countries have exported a lot of wheat, corn, sunflower seed oil and other foods.
The Russian Ministry of National Defense stated on Telegram that some waters in the northwest and southeast of the Black Sea International Water were announced for a temporary danger of sailing.
If the flag country of the ship attacked by Russia is Ukrainian allies, it will marked a sharp upgrade of the confrontation between Russia and Ukrainian allies.The Russian Ministry of Defense does not specify what actions will be taken for any ships who try to enter the port.
