The catastrophe at the Kakhovka HPP causes a surge in wheat prices
US wheat futures have risen to $6.4 per bushel, up from a more than two-year low of $5.9
According to analysts, the explosion at the Kakhovka HPP dam will lead to a cessation of water supply, which is vitally necessary for agriculture in the southern part of Ukraine. In addition to the direct destruction of agriculture, these events amplify geopolitical concerns and cast doubt on the possibility that russia will continue the agreement ensuring the sea export of grain from Ukrainian ports.
This is reported by Trading Economics.
It is noted that high production in other countries has limited price increases. A high harvest in russia has boosted foreign sales forecasts to nearly 50 million tonnes, despite moscow's recent increase in grain export duties.
"Prices have been lowered by sellers of the world's largest exporter as this year's record harvest has increased stocks to an unacceptable level," the publication writes.
Background. Earlier, Mind reported that according to the CEO of Ukrhydroenergo, the Kakhovka HPP reservoir would disappear within 3-4 days.
