Grain-driven inflation seemed to ease... then Russian bombing kills Ukraine's largest agricultural conglomerate owner

Wheat and Corn Prices Fall to Pre-Ukraine War Levels
Despite Grain Export Agreement, Russia Continues Bombing Black Sea Port Cities
Max Agricultural Company CEO Couple Killed in Mykolaiv Bombing
European and North American Heatwaves May Also Affect Grain Harvests

[Asia Economy Reporters Park Byung-hee and Lee Hyun-woo] The Wall Street Journal (WSJ) reported on the 31st of last month (local time) that the burden of grain-driven inflation is easing as the prices of grains such as wheat and corn, which had soared to unprecedented heights, have recently declined.

On the 29th of last month, the September delivery price of wheat futures on the Chicago Board of Trade (CBOT) closed at $8.0775 per bushel. Wheat futures prices have recently fallen below the $8 level, returning to the price levels before the Ukraine war. Wheat futures prices threatened the $13 per bushel mark in early March and mid-May following the outbreak of the war but have since shown a clear downward trend.

CBOT corn futures prices also closed last week at $6.1625 per bushel, falling back to pre-war levels.

The Food and Agriculture Organization (FAO) of the United Nations still maintains its global food price index at a level higher than before the war. However, it has dropped about 3% compared to March, immediately after the outbreak of the Ukraine war.

Since May, the U.S. Federal Reserve (Fed) has implemented strong tightening measures, and concerns about a global economic recession have increased, causing the rise in commodity prices to ease. Recently, the agreement between Russia and Ukraine to resume grain exports from Black Sea ports has further fueled the decline in grain prices. Russia and Ukraine accounted for 28% of the world's wheat exports and 15% of corn exports last year.

JPMorgan Chase predicted that the global food price inflation rate, which recorded 13% in the second quarter, will fall to about 5.5-6% in the fourth quarter, roughly half the previous level.

However, concerns remain that grain prices may show volatility as the Ukraine war continues. After agreeing to resume grain exports from Black Sea ports, Russia has continued airstrikes targeting Black Sea port cities, raising doubts about whether it will fulfill its promise to resume exports.

Just before the resumption of grain exports, an incident occurred where Oleksiy Vadatursky, founder and CEO of Nibulon, Ukraine's largest agricultural company, was killed in a Russian airstrike.

According to Bloomberg News on the 31st of last month, Vitaliy Kim, governor of Mykolaiv, stated on his Telegram that "Due to Russian bombings from last night until this morning in Mykolaiv, Oleksiy Vadatursky and his wife, the representatives of Nibulon, died at their home."

In addition to the Vadatursky couple, three civilians were injured in the overnight bombing. Oleksandr Senkevych, mayor of Mykolaiv, said on Telegram that 12 missiles launched by Russia targeted residential and educational facilities. He added, "This bombing seems to be the worst since the war began."

As of 2016, Vadatursky's total assets were estimated at $710 million (approximately 930 billion KRW), ranking him 7th among Ukraine's wealthiest according to local media. Nibulon, which he led, is Ukraine's largest agricultural company headquartered in Mykolaiv.

Mykolaiv is also a major grain export port near Odesa. With Russian airstrikes intensifying on ports near the Black Sea ahead of the resumption of grain exports, concerns are rising that grain exports may continue to be threatened. The Turkish Presidential Office announced that grain shipments through the Black Sea could resume as early as the 1st or at the latest from the 2nd of this month (local time).

Recent heatwaves sweeping across Europe, the United States, and worldwide are also expected to affect crop yields and potentially impact grain prices. The U.S. Department of Agriculture (USDA) forecasts that global wheat and corn production will decrease by 1% and 2.6%, respectively, next year. The USDA also expects Ukraine's wheat production to plummet by 41% and its export volume to be halved.

This content was produced with the assistance of AI translation services.