Turkey expects wheat prices to drop globally with the Istanbul agreement

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The head of the Grain Suppliers Association in Turkey, Gulfem Aran, expressed her belief that wheat prices will continue to fall globally.

After the signing of the Ukrainian grain shipment agreement in Istanbul on Friday.

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In a statement, Aran said, “We believe that the past world wheat prices are actually in a downward trend, and may also drop somewhat when the grains (via the Black Sea) are safely exported.”

She pointed out that expectations indicate a rise in the Russian wheat harvest from 76 million tons in 2021 to 88 million tons in 2022.

She added that due to the war in Ukraine, the wheat crop in this country is expected to decrease from 32 million tons in 2021 to 20 million tons in 2022.

Aran made it clear that Ukraine cannot export its grain to the required amount by sea as a result of the logistical obstacles caused by the war.

This put the Ukrainian grain-importing countries in Africa and the Middle East in a difficult situation, and led to an increase in world grain prices.

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She stressed that with the signing of the Ukrainian grain shipment agreement through the Black Sea in Istanbul on Friday, wheat prices are expected to drop.

On Friday, the city of Istanbul witnessed the signing of the “Document on the Safe Shipping Initiative for Grain and Foodstuffs from Ukrainian Ports” under the auspices of Turkish President Recep Tayyip Erdogan.

The document was signed by Turkey’s Defense Ministers Hulusi Akar, Russia’s Sergei Shoigu, and Ukraine’s Infrastructure Minister Alexander Kobrakov.

The agreement guarantees securing exports of grain stuck in the Ukrainian ports on the Black Sea (Eastern Europe) to the world.

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Many countries in the world are suffering from a grain crisis as a result of the inability of cargo ships to leave Ukrainian ports due to the war that broke out since February 24.