The Black Sea Grain Initiative (BSGI) was extended to a 60-day period from May 18th. The agreement was brokered jointly by the United Nations Food and Agricultural Organization and the Republic of Turkey.
During the past sixty days, there have been frequent interruptions in shipment of grain from Ukraine Black Sea ports. This was mainly due to obstruction imposed by Russia through delays in inspection of inbound vessels. Some bulk carriers have been forced to anchor for periods in excess of a week.
Maria Zakharova a spokesperson for the foreign ministry of Ukraine stated, “The extension of the grain deal is for a two month period. Thus there is a chance, not in words, but in deeds to help ensure global food security to help needy countries.”
If the BSGI has any influence on world grain availability and prices, it will depend on Russia complying with both the intent and spirit of the agreement. Impeding shipments will result in artificial shortages of grains and oil seeds, raising prices of commodities and indirectly affecting livestock and food producers worldwide.