The Door Cracks Open a Little Wider on Ukrainian Grain Exports

Harvest is underway in Ukraine despite nearby fields being on fire and the need to avoid shell holes or unexploded ordnance.

Up until late this week, there was no assurance the 22 million tons of grain trapped inside the eastern European nation would flow out of the country at its normal rate. After five months of war, the door to increasing exports cracked open just enough to give Ukrainian farmers and worldwide customers a glimmer of hope when negotiators from both sides met in Istanbul, Turkey. 

Before the Russian invasion, Black Sea ports were the primary route for the export of up to seven million tons of grain per month. Currently, the war has cut that number by two thirds.

The effect of severely reducing the flow in the grain export pipeline has increased food insecurity in African nations. Before the war, Ukraine sent 30 percent of its harvest to Europe, 30 percent to North Africa and 40 percent to Asia. Ukraine is one of the world’s largest exporters of wheat, corn and sunflower oil.

According to Turkish Defense Ministry officials, the agreement gives joint control of ships traveling in and out of the affected Ukrainian Black Sea ports. Turkish officials say there will be an agreement to sign next week but experts are cautioning the move won’t have an immediate impact on grain exports.

For Market to Market, I’m David Miller.