The Expiration of the Black Sea Grain Deal
🌾 The Expiration of the Black Sea Grain Deal.
The expiration of the Black Sea grain deal, which allowed Ukraine to export grain via the Black Sea, is a significant development with implications for global food prices and the World Food Programme (WFP). Ukraine is a major producer of grains and oilseeds, and the deal helped alleviate global food prices during the Russia-Ukraine conflict. However, with Russia suspending its participation in the deal, prices for grains and oilseeds have already risen, potentially leading to higher prices for staple foods. The global food crisis is not yet resolved, with the WFP highlighting the largest and most complex hunger and humanitarian crisis in over 70 years. Global corn stocks were initially low, but increased exports from Brazil have helped boost supplies. Wheat stocks, however, remain tight. The WFP heavily relies on grain purchases, with Ukraine being a top source. If the corridor for grain shipments through the Black Sea becomes inoperable, the WFP will need to seek alternative sources at potentially higher costs.
In a bid to further pressure Russia over its war in Ukraine, the U.S. Senate has unanimously passed a bill to prohibit Russian uranium imports.