Russia's Grain Prices Plummet Amid Black Sea Export Halt

Russia's domestic grain prices have plummeted by 36% since June, according to Sovecon consultancy, as a result of the halt in exports through the Black Sea and the Sea of Azov. This has created an oversupply in the domestic market.

The war between Russia and Ukraine has disrupted trade flows, with both countries pounding each other's export terminals and grain carrying vessels in the Black Sea. As a result, Russia's usual route for exporting 70% of its grain exports to major customers in the Middle East and Mediterranean through the Black Sea is no longer viable.

Russia has introduced measures to support exports, including rerouting trade flows and scrapping a grain export duty. However, farmers and markets are sceptical about the effectiveness of these measures.