With every passing minute; Russia is Inching towards Ukraine’s Capital Kiev. The condition has started becoming worst in this east European Country’s Grain export since as many shipping companies have suspended sailings to affected Black Sea ports with insurance premiums for voyages soaring in recent days and at least three commercial ships hit by bombs since Feb. 24. The prospects for Russian and Ukrainian spring grain, which is supposed to start soon, will also be affected by the conflict.
Ukraine used to be a big exporter of non-GMO corn. India imported 27,000 tonnes non-GM corn from Ukraine at $205 per tonne in May 2019 due to shortage triggered by pest infestations and dry weather. Extended conflict in Ukraine has raised Food & Feed prices around the world — and hit the already hungry hardest. A big hole has suddenly been blown into the supply schedule of feed makers, including in Benelux, Iberia, the Middle East and North Africa. According to the vox.com; Ukraine alone supply 13% of global Corn produced whereas Russia and Ukraine combinedly exports 57% of Global Sunflower seed, safflower or cottonseed oil. The data given here are self explanatory for the upcoming soured prices of Food and Feed commodities.
Due to tensions in the Black Sea region and the high freight rates, now the demand for corn from South Asia will shift to India as no other origin can feed this demand. India’s corn exports have been increasing for the past two years as supplies from Myanmar dwindled after the military coup in that country. Farm gate price has already started increasing from 19.5 Rs. / Kg. to 22.0 Rs. / Kg due to local shortage and stronger global demand. The poultry industry is gearing up to ensure that prices of soybean, which is also used as chicken feed, remain under control.
