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Russian invasion against Ukraine affects wheat and grain markets worldwide
The Asharq Al-Awsat reported that since the eruption of the Russian-Ukrainian tensions, fears have emerged that the global wheat and grain markets will be severely affected, given that the two countries secure an important part of global exports.
In the midst of this political dilemma, the countries of the Middle East, mainly Egypt, Lebanon, Iraq and the Maghreb countries, are threatened with a serious problem, as their major reliance on Ukrainian and Russian wheat would be difficult to compensate from other markets.
Russia and Ukraine account for 29% of world wheat exports, 19% of corn exports, and 80% of global exports of sunflower oil.
Lebanon had lost its grain storage capacity since the massive explosion that rocked the port of Beirut in August 2020 and destroyed the wheat silos.
On Friday, Lebanese Economy Minister Amin Salam told Reuters that wheat reserves were sufficient for one month at most, adding that he was seeking to conclude import agreements from different countries amid market concerns over the Ukrainian crisis.
He added that Lebanon, which imports nearly 60% of its wheat from Ukraine, was in talks with other countries including the United States and India to import wheat.
The World Food Program (WFP) warned on Thursday that the war in Ukraine would likely increase fuel and food prices in war-torn Yemen, which could push more residents into starvation as aid funding dwindles.
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The WFP has had to cut food rations for eight million people in Yemen, as the seven-year war between the government and the Iran-backed Houthi militias has pushed the country to the brink of famine.
In Egypt, the most populous Arab state and the world’s biggest importer of wheat, the authorities will scramble to find urgent alternatives to feed 100 million citizens, with the country importing about 40% of its needs from Russia and Ukraine.
It should be noted that since the launch of Russia's invasion against Ukraine on Thursday, wheat prices on the Chicago Stock Exchange have risen to their highest level in nine and a half years, while the conflict threatens to disrupt the flow of supplies from the region.
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Meanwhile, European wheat futures jumped to a record peak, and wheat prices reached 344 euros per ton at the Euronext group, which operates a number of European stock exchanges.
Source: aawsat
