USDA Creates a Dashboard to Show Grain Exports Out of Black Sea Region

Wednesday, May 17, 2023

As talks continue to extend the Black Sea Grain Initiative beyond Thursday, USDA released a "dashboard" seeking to show the value of the region for food security.

Talks continue over another extension of the grain deal that has allowed Ukraine to export more than 30 million metric tons (mmt) of grain and oilseeds since July of last year. The United Nations has called its extension "vital for global food security."

If Russia does not agree to extend the deal beyond Thursday, that means cargo ships would not be assured safe passage in and out of Ukrainian ports.

Martin Griffiths, the U.N. head of humanitarian aid, updated the U.N. Security Council on Monday about the status of the war in Ukraine and called on Russia and all parties to continue to extend the grain initiative. Griffiths cited the decline in wheat prices globally was due in part to the volumes of grain coming out of Ukraine. More is needed to keep "predictable supplies of humanitarian food assistance" flowing, he said.

While there are concerns about the state of the wheat crop in Kansas and the extension of the Black Sea Grain Initiative, none of that is helping wheat or other grain prices this week. July wheat was down 16 1/2 cents in trading on Tuesday at just over $6.44 a bushel. Other wheat contracts were also down.

Wheat has accounted for about 28% of the shipments out of Ukraine under the agreement while corn accounts for about 50% of all the grain moved out. Sunflower oil and meal account for about 11% and other commodities account for another 11%.

According to the U.N., China, Spain, Turkey and Italy have been the biggest importers in the Black Sea deal.

During the weekend, Cindy McCain, head of the World Food Program, pointed out that a charged vessel from Ukraine had arrived in Yemen, one of 20 ships delivering 600,000 metric tons of Ukrainian wheat for WFP operations globally. "For millions of people, this aid is lifesaving," McCain stated. She added, "The Black Sea Grain Initiative must be renewed."

Source: dtnpf.com