World prices react to first ship with grain to leave Ukraine's Black Sea port
Global wheat prices started to decline as soon as the first ship with grain left one of Ukraine's Black Sea ports, for the first time since July, when Russia announced its withdrawal from the Black Sea Grain Initiative.
Source: Bloomberg
Quote: "The first grain ship in over two months left one of Ukraine’s Black Sea ports, as Kyiv seeks to defy Russia’s effective maritime blockade following the collapse of a safe-passage deal. Wheat prices fell."
Details: Thus, wheat futures fell by 1.3% to $5.84 per bushel on 19 September.
Nevertheless, it is too early to talk about any significant impact of this opening of the corridor.
Quote: "The market is watching for a response from Moscow, which has said it would treat any ships headed to Ukraine’s ports as potentially carrying weapons. In August, the Russian navy fired on a vessel to force it to stop for checks."
Background: On 19 September, the Resilient Africa vessel left the port of Chornomorsk carrying 3,000 tonnes of wheat and is heading towards the Bosphorus Strait.
In August, the Russian military fired on a civilian vessel in the port of Odesa. Only the effectiveness of Ukrainian air defence prevented Russians’ intentions.
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