Nivievskiy about grain prices/Channel 24 collage
Since the beginning of the full-scale war, world grain prices have almost doubled. Domestic – collapsed by 30% – 50%.
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Oleg Nivevsky, Vice President for Economic Education of the Kyiv School of Economics, told Channel 24 about this. According to him, domestic prices have fallen due to the fact that the Russian invaders cunningly blocked the ports in Ukraine. It is difficult to export products due to expensive logistics. The shelling of Odessa may also affect the situation.
The world reacts sensitively to the war in Ukraine
The latest news on the agreements between Ukraine, Turkey, the UN and Russia for the export of grain immediately affected world grain prices. They fell by 6%: everyone expects that there will be more grain, which is why the price has decreased. And demand during this period is quite stable.
Nivevsky stressed that the price may again begin to rise due to the shelling of the Odessa seaport. This will most likely happen on Monday. After all, today is Saturday – most people are off.
The world feels the lack of production and sensitively reacts to the events taking place in our country. Now it would be interesting to see how the world markets reacted to the shelling of Odessa. I think that on Monday the markets will react strongly to this,” the expert noted.
It is important for Ukrainian producers to manage to export products across the sea. Then, according to Nivevsky's estimates, domestic grain prices will rise by roughly $100. This will seriously improve the situation with working capital of agricultural producers.
The expert talked a lot with representatives of the sphere. Most say that in the current situation, they are literally going into a serious minus. It would be beneficial for many not to sow at all, neither in spring nor in autumn.
We have sown, met, taken out loans, and now there are much greater disadvantages than if we had done nothing. These are not uncommon cases. For farmers, every price increase is great. And the best option is to unblock the ports,” the expert said.
The shelling of the Odessa port: the main thing
- Recall that on July 22, Ukraine and Russia signed separate agreements on the export of grain. They agreed on the safe transportation of products from Ukrainian ports.
- On July 23, Russian invaders launched 4 rockets at the port in Odessa. Two of them hit the target, two more were shot down with the help of air defense. There was grain that was supposed to be exported to other countries.
- President Volodymyr Zelensky reacted to the cynical shelling of Odessa. Russia will find ways not to comply with the grain agreement, he said.
