Ukraine Grains Export Plummets as Russian Blockade Takes Hold

Russia's attacks on Ukraine's port infrastructure have caused a significant decline in agricultural exports, with a 75% drop reported for July and early August.

The Ukrainian Port Authority noted that over 70 attacks were made on ports during this period, as well as 62 strikes on ships. This has led to an accumulation of grain within Ukraine, resulting in falling domestic prices.

Analysts estimate that farmers can only break even on wheat exports at current prices, while other grains may not be able to cover production costs.

The shortage of grain storage capacity is expected to reach 11 million metric tons, with this year's harvest totaling about 60 million metric tons. The National Bank of Ukraine estimates that the country could lose approximately $2.5 billion in foreign exchange earnings by the end of the year due to the blockade.