Ukraine and Europe’s bread basket

According to HSBC’s most recent email report published by Mark Beresford-Smith, in the short term we don’t need to get anxious about the supply of cereals and course grains. But that has not stopped people worrying.

Last year was apparently a generally good harvest for this region. Ukraine and Russia together account for about a tenth of world wheat production, and about 15% of exports.

But if the position is not clarified soon, there could be a problem in Russia and/or Ukraine moving grain through the Black Sea ports.  This could prevent short term requirements being met if there is suddenly a demand for grain and it cannot move through these ports.

Mark Beresford-Smith’s figures are based on the US Department of Agriculture WASDE February 2014 figures.

Click here to view the HSBC article.