Wheat prices have shot up to 4% as the industry have significant concerns over supplies as Russia continues to target “grain infrastructure.”
Russia is refusing to renew the Black Sea grain deal and Ukrainian warehouses are being destroyed which has resulted in corn prices rising by 2%.
“There are talks about fresh attacks on grain infrastructure in the Danube which is supporting prices,” one Singapore-based grains trader told Reuters. “We are still trying to find out the extent of the damage.”
Almost 40,000 tonnes of grain has been damaged by a drone strike in Izmail which was due to be sent to China, Israel and African countries.
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“The Russians attacked warehouses and grain elevators” in the port of Izmail on the River Danube in southwestern Ukraine, Oleksandr Kubrakov said on Twitter.
Russia has said that they will restore the shipments of grain in the Black Sea “once its interests are upheld” and Moscow’s concerns are dealt with.
Kremlin spokesman Dmitry Peskov said: “Russia – and President Putin has said this 100 times already – is ready to immediately return to the deal itself… just the deal must be implemented in the part that concerns the Russian Federation. So far this has not been done.”
He added: “The West imposed sanctions against Russia without taking into account the needs of the world community for food, the UN General Secretariat is well aware of this.”
The Turkish leader Tayyip Erdogan told Vladimir Putin in a phone call that he will continue with diplomacy to restore the grain deal putting more pressure on Moscow.
Erdogan’s office said in a statement, “President Erdogan expressed the importance of refraining from steps that could escalate tensions during the Russia–Ukraine war, emphasising the significance of the Black Sea initiative, which he described as a bridge of peace.”