Ukraine grain export infrastructure has undergone a Russian missile attack which has destroyed around 60,000 tonnes of grain, as well as damaging wharves, reservoirs and storage infrastructure. Global grain prices have increased significantly as a result.
Ukraine ports in areas such as Odesa and Chornomorsk were targeted just hours after Russia pulled out from the Black Sea Grain Initiative, and the attacks continued throughout the night.
Grain terminals and port infrastructure suffered extensive damage, with both ports having previously been a part of the grain deal. An announcement by The Kremlin stated that from Thursday 20th July, any ships going to Ukraine ports will seen as ‘siding with Kyiv’, and Moscow has threatened to destroy ships seeking passage across the Black Sea.
Destruction of this export infrastructure is expected to have consequences for global commodity prices, as wheat prices have already begun to rise by 8.2% as of Wednesday 19th July. Corn prices have inflated by 5.4%, with the figures set to continue rising.
It is widely believed that businesses relying on grains, flours and oils will be impacted by the attacks through increased price inflation and limited availability.
