Since Moscow canceled a landmark grain deal a week ago, Russia has launched repeated attacks on Odesa, a key hub for exporting grain.
Wheat prices rose more than 8.5% on Monday after the attack on the Danube, which is a key thoroughfare for Ukraine’s grain exports amid the war. It shows the market’s anxiety about Moscow expanding its targeting of Ukrainian grain shipments.
The attack also raises questions about a crucial alternate route after Russia exited the accord that provided protections for grain ships in a bid to ease a global food crisis. Russia and Ukraine are two of the world’s major wheat, barley and vegetable oil suppliers. Other routes by road and rail through Europe will heap on transportation costs and likely lead to lower production by Ukrainian farmers, analysts say.
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