Global grain prices recorded biggest drop since 2008 in July

Food prices fall across the board

According to FAO statistics, the global food price index was 140.9 in July, down 13.3 or about 8.6% from June, the largest monthly decline since October 2008. But compared with July last year, the index still rose 13.1% in July this year.

The fall in the food price index in July was mainly due to sharp declines in grain and vegetable oil prices; dairy and meat prices also fell, but to a lesser extent.

The FAO's global cereal price  index for July was 147.3, down 11.5 percent from June, and international prices for all cereals surveyed fell. Among them, the biggest decline was in wheat, which fell 14.5% from June. Part of the reason for the decline in wheat prices was the agreement between Russia and Ukraine on Black Sea grains, the report said. In addition to this, a bumper wheat harvest in the northern hemisphere also had an impact on prices.

Global coarse grain prices fell 11.2% from June, the fourth consecutive month of declines ; global corn prices fell 10.7%, also due to the Black Sea grain deal and earlier corn harvests in Argentina and Brazil than last year.

The vegetable oil price index fell to 171.1 in July, down 19.2% from June and the lowest in 10 months. International palm oil prices fell for the fourth consecutive month on the back of ample Indonesian palm oil exports . While there are doubts about the reliability of Black Sea grains, sunflower oil prices have fallen markedly due to lower global import demand. In addition to this, lower crude oil prices also helped to cool vegetable oil prices .

Buyers refuse to accept the goods, more than 26,000 tons of corn will find new buyers

On August 1, local time, the cargo ship "RAZONI", carrying 26,000 tons of Ukrainian corn , left the port in southern Ukraine and sailed to the port of Tripoli, Lebanon.

According to CCTV News, on August 8, local time, the Ukrainian Embassy in Lebanon posted on social media that Lebanese buyers refused to receive more than 26,000 tons of corn carried by the " RAZONI " due to delayed shipments for more than five months. ” is looking for new buyers for the grain.

The grain carrier "RAZONI" departed from the port of Odessa, Ukraine on August 1. It is the first grain carrier to depart from Ukraine under .

According to the previously announced plan, the grain ship "RAZONI" should arrive at the port of Tripoli, a city in northern Lebanon, on the morning of August 7, local time. On the evening of August 6, the Ukrainian Embassy in Lebanon stated that the "RAZONI" could not arrive at the Tripoli port on time. The person in charge of the port of Tripoli subsequently confirmed that the grain ship had removed the "Port of Tripoli" from the list of destinations. On August 7, the Lebanese Ministry of Public Works confirmed that the "RAZONI" had changed its course.

First cargo ship carrying Ukrainian grain passes through Black Sea

Xinhua News Agency reported on August 2 that after Russia and Ukraine signed agreements with the United Nations and Turkey respectively to resume the export of agricultural products from the Black Sea ports, the first cargo ship carrying Ukrainian grain left the port of Odessa on the morning of August 1, It anchored near Istanbul, Turkey's largest city, and underwent joint inspections before arriving in Lebanon.

According to the Associated Press, the Sierra Leone-flagged cargo ship "Lazzoni" honked its horn as it left the port on the morning of the 1st and loaded more than 26,000 tons of corn.

Ukrainian Infrastructure Minister Alexander Kubrakov confirmed the departure of the cargo ship on social media "Twitter".

It is understood that this is the first cargo ship carrying Ukrainian grain to pass through the Black Sea since Russia launched a special military operation against Ukraine on February 24.

It is understood that Russia and Ukraine are the world's largest exporters of wheat and corn. The escalation of the crisis in Ukraine disrupted the operation of ports, superimposed the impact of Western sanctions, and a large amount of grain was stranded in Ukraine and could not be shipped out, and the global food crisis intensified.

Ukraine accused Russia of blocking ports to prevent Ukrainian exports of grain. Russia denies interfering with Ukrainian exports, accusing Ukraine of laying a large number of mines in the Black Sea, jeopardizing the safety of navigation.

On July 22, Russia and Ukraine signed a "parallel agreement" with Turkey and the United Nations respectively on the export of agricultural products from the Black Sea ports in Istanbul. The content includes establishing a joint coordination center in Istanbul and ensuring the safety of food transportation. Both Russia and Ukraine agreed that neither party may attack the delivery. For the ships of agricultural products, the Istanbul Joint Coordination Center will assign representatives from all parties to jointly manage the ships entering and leaving the port . Three Ukrainian ports, including Odessa, will begin to ship grain and fertilizers out.

Ukrainian President Volodymyr Zelensky said in a video speech on the evening of the 1st that the shipment of the above-mentioned goods was "the first positive signal that there is an opportunity to prevent the spread of the world food crisis." He urged international partners to closely monitor Russia's compliance with the agreement.

Russian Presidential Press Secretary Dmitry Peskov said the departure of the Lazoni was "very positive" news and would help test "the efficiency of the mechanisms agreed during the talks in Istanbul."

More ships will leave Ukrainian ports via safe waterways, the Associated Press said. The Ukrainian government said another 16 ships laden with grain were waiting to leave the port of Odessa.

However, some shipping companies are still assessing risks and are in no hurry to export grain via the Black Sea.