World food supplies at risk as Russia withdraws from Black Sea deal
Russia's weekend backtrack from a United Nation-brokered deal to export Black Sea grains is likely to hit shipments to import-dependent countries_ deepening a global food crisis and sparking gains in prices.
Hundreds of thousands of tonnes of wheat booked for delivery to Africa and the Middle East are at risk following Russia's withdrawal_ while Ukrainian corn exports to Europe will take a hit_ two Singapore-based traders said.
Russia on Saturday suspended participation in the United Nation grain deal for an 'indefinite term'_ after what it said was a major Ukrainian drone attack on its Black Sea fleet in Crimea.
Earlier this year international wheat prices jumped to an all-time high and corn hit a 10-year top as Russia's invasion of Ukraine added fuel to a rally set off by adverse weather and COVID-19 supply disruptions.
Australia_ a key wheat supplier to Asia_ is unlikely to be able to fill any supply gap_ with shipping slots booked right up to February_ traders said.
No ships moved through the established maritime humanitarian corridor on Sunday. The United Nations_ Turkey and Ukraine_ however_ pressed ahead to implement the Black Sea grain deal and agreed on a transit plan for Monday for 16 vessels to move forward_ despite the withdrawal of Russia.
'We have to see how the situation unfolds. It is not clear if Ukraine will continue to ship grains and what happens to Russian exports_' said the Singapore-based grains trader.
Chicago wheat futures on Monday jumped more than 5 percent and corn rose over 2 percent.
Asian buyers recently booking Ukrainian wheat cargoes include Indonesia_ the world's second-largest importer of the grain_ although the region typically relies on Australia and North America.
In recent deals_ Indonesian millers bought four cargoes or around 200_000 tonnes of Ukrainian wheat for November shipment in deals signed over the last few weeks_ traders said.
Previous week_ a government agency in Pakistan bought about 385_000 tonnes of wheat in a tender likely to be sourced from Russia and Ukraine.
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