Ukraine closes its ports - Global supply of cereals and oil seeds uncertain

The Ukrainian Armed Forces have suspended commercial transport going through Ukrainian ports on Thursday, after Russian forces attacked the country, an adviser to the head of the Ukrainian president's cabinet told Reuters, expressing fears of interrupting the supply of cereals and oil seeds to the world market.

According to Reuters, Russia has previously ordered the Sea of ​​Azov to be closed to the trade of merchant ships until further notice, however it has kept its ports in the Black Sea open.

They stress that Ukraine is a large exporter of cereals, and its biggest buyers are China and the EU. It also competes with Russia in the supply of wheat to Egypt and Turkey.

- The market is still trying to get a clearer picture of the real military situation on the ground. It seems that the ports on the Azov and Black Sea have not been damaged so far - Reuters report a statement of a European grain trader who fears that suppliers will not be able to fulfill their contractual obligations due to extreme circumstances.

Wheat, barley and corn are exported from ports on the Sea of ​​Azov to buyers in the Mediterranean, including Cyprus, Egypt, Italy, Lebanon and Turkey.

Those countries will have to look for alternative sources of supply should the ports remain closed.

Reuters also states that the company Cargill Inc., which trades in agricultural products, announced that the ship they rented was hit by a missile in the Black Sea, but that it "remained fit to sail" and that he crew was safe.

Cabinet of the President of Ukraine

Ukrainian ports

Sea of ​​Azov

Black Sea

Cargill Inc

closure

wheat

barley

corn