Although grain exports are currently continuing from Ukraine, grain traders are shifting their business to alternative sources as difficulties obtaining financing because of the unrest in Ukraine is obstructing business for Ukraine-based grain companies. Wheat prices jumped 8.6% as Russia moved to take control of Ukraine’s Black Sea region of Crimea from where approximately 10% of Ukraine’s grain shipments originate, and U.S. wheat futures increased 4.6%, the largest one day percentage increase in more than 17 months. The U.S. Department of Agriculture (USDA) expects Ukraine to be the fifth largest exporter of wheat by volume, and the third largest shipper of corn in 2014. Corn exports stand at greater risk from the situation as Ukraine has already shipped the majority of its wheat but has yet to ship the bulk of its corn. As other countries impose trade sanctions against Russia in response to the unrest, Russian agricultural exports could be affected as well. Agriculture accounts for 24% of Ukraine’s total exports and 5% of the country’s gross domestic product.
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