After the Russian approval by the extension of the operation of the grain transaction, geopolitical risks in the global food market were postponed for the period before the start of the new harvest. The head of the Turkish Exchange of Specialized Products (Türi̇b) Ali Kyrali said about this.
Kyrali recalled that the validity of the Black Sea grain initiative expires on March 18, and was extended for another two months.
“Russia did not oppose the next extension of the grain transaction. This means that the risks for the food market are postponed. The grain harvesting season, in particular wheat and barley, begins at the end of May. Russia itself is starting the new season of agricultural work with the cargo of last year reserves of agricultural products. At the same time, the crop of the current year is also expected to be high. Therefore, in May negotiations, Moscow’s position on agricultural export and removal of restrictions will be more persistent, ”the head of Türi̇b predicts.
Kyrali emphasized that the agreement on the grain corridor plays a significant role in the prevention of the global food crisis.
He attracted attention to the data of the US Department of Agriculture (USDA), which increased the forecast of world production of wheat by 5 million tons – up to 789 million tons.
“is predicted that Russia in 2023, as well as in the past, will produce grains within 100 million tons. Therefore, it is important for the Russian Federation to normalize the export of agricultural products,” Kyrali is sure.
as part of the Black Sea Grain Initiative, concluded on July 22, 2022, 24 million tons of agricultural products were exported from the Turkey and the UN mediation and the UN. 40 percent of agricultural products transported through the “grain corridor” entered the ports of European states, 30 percent to Asian countries, 13 percent to Turkey, 12 percent to African countries, and 5 percent to the Middle East.