Ukraine's Grain Shipments Are at a Virtual Halt

Summary

Bloomberg's Pyotr Kozlov explains how Russian strikes on Greater Odesa have virtually halted Ukraine's Black Sea grain shipments. The ports usually handle about 90% of Ukraine's grain exports, dealing a severe blow to Ukrainian farmers and the economy. The disruption is also affecting global grain markets, with wheat prices already at two-year highs and potentially moving higher. Major importers in the Middle East, North Africa, and Asia are being forced to seek alternative supplies.

• Russian attacks on Odesa ports have virtually halted Ukraine's Black Sea grain shipments.
• The ports typically account for about 90% of Ukraine's grain exports.
• Ukrainian farmers face falling domestic prices and are choosing between selling now or waiting.
• Agriculture provides nearly half of Ukraine's export revenue, and the halt could hit 2% to 4% of GDP.
• Ukraine is trying to reroute exports via western borders and rail, but bottlenecks limit volumes.
• World wheat prices recently hit a two-year high and could rise further because of continuing disruptions.
• Ukraine and Russia export more than 25% of world wheat, with key buyers in the Middle East, North Africa, and Asia seeking alternatives.