Grain prices drop after Putin guarantees safe shipment

Global grain prices have dropped by 10% after Russian President Vladimir Putin’s promise to guarantee a safe passage for wheat trading through Russian-controlled ports on the Black Sea. 

Current wheat prices have reached $10.4 per bushel (27.2kg) on Friday, similar to April levels of $10.2 per bushel, according to the Chicago Board of Trade. 

In addition, prices of corn for animals fell this week to reach $7.27 per bushel.

Grain prices came to a peak in May due to fears that Russian military operations would hinder the passage of grain ships, and the Western world blames Moscow for holding up Ukraine grain shipments.

However, Putin denied the accusations and instead blamed Kyiv, saying during an interview with the Russia-24 TV channel, “As for the export of Ukrainian grain, we do not interfere with this… It was not we who mined the passages to the ports. Ukraine mined them. I have already told all of our colleagues many times: [Ukraine] should clear the mines and allow the ships with grain to leave the ports. We guarantee peaceful passage without any problems.”

Ukraine comes sixth amongst wheat exporting countries. The continuing blockade of wheat shipments raises fears over food security around the world. According to Coldiretti, Italy’s association representing agricultural producers, countries such as Egypt, Turkey, Bangladesh and Iran import more than 60% of their wheat from Russia and Ukraine.