EXPLAINER: Why does the Black Sea grain deal's expiry matter?

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EXPLAINER: Why does the Black Sea grain deal's expiry matter?
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Prices for grains and oilseeds have already risen in response to news that Russia will suspend its participation in the Black Sea grain deal.

to record highs. The deal, agreed in July 2022 some five months after the war started, helped to bring down prices and ease a global food crisis.

Prices for wheat, the main ingredient in bread, have fallen by about 14% so far this year and corn is down around 23%. A sharp increase in exports from Brazil, however, has since helped to boost supplies along with the export of nearly 17 million metric tons of corn through the corridor. In 2021, WFP purchases totaled 4.4 million metric tons with Ukraine its top source, providing 20% of the total.Most of the food goes to Africa along with some countries in Western Asia such as Yemen and so the WFP tends to source most supplies from eastern Europe, which is closer than major producers in North or South America.

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