‘This could to some extent reduce food inflation in the world.’
The readiness of Russian President Vladimir Putin to open Ukrainian ports for the purpose of exporting wheat has caused wheat prices to fall.
News from the Kremlin stated that talks between Turkish President Tayyip Erdogan and Putin confirmed that Russia was ready to facilitate the means of channeling grain from Ukrainian ports to Ankara.
It was previously understood that Putin had also told German and French leaders that Russia was ready to discuss ways to resume shipments of Ukrainian grain.
As a result, some commodities were seen declining slightly with the most active wheat contract on the Chicago Board of Trade (CBOT) down 1.77% at $ 11.37 or RM49.75 per share.
In addition, corn commodities were also seen declining 0.8% at $ 7.71 a bushel while soybean prices rose 0.23% at $ 17.36 a bushel.
The European Wheat Situation
Although news of the availability of wheat exports has to some extent eased the pressure on staple foods in Europe, production problems remain a focus.
According to Ukrainian weather forecasters, the yield of wheat harvest in the winter in the control areas of Ukraine is expected to reach 20.1 million tons this year, down from 32.2 million tons recorded in 2021.
Not to be forgotten is also the drought situation in India which has affected plans for the country to fill the void of Russian wheat exports to Europe.
