Commodities
Grain Prices Could Rise Up to 15% From Black Sea Deal Pause, IMF Says
- Russia ended the Ukraine grain-export deal last week
- Ukraine is among world’s top grain and vegetable-oil shippers
A farmer collects grain during a wheat harvest near Kyiv on July 24.
Photographer: Andrew Kravchenko/BloombergThis article is for subscribers only.
Global grain prices could increase as much as 15% after Russia pulled out of a deal that allowed Ukraine to safely ship its grain through ports on the Black Sea, the International Monetary Fund’s chief economist said.
“It’s very clear that the Black Sea grain initiative was very instrumental in making sure that there will be ample grain supply to the world in the last year,” Pierre-Olivier Gourinchas told reporters Tuesday. “The same mechanics work in reverse and it’s likely to put upward pressure on food prices.”