Black Sea Grain Initiative Impacts the U.S.
“But the impact is really far-reaching because the cheapest wheat in the world right now is out of Russia. It's also out of Ukraine. And when that cheap wheat to the world gets cut off, it puts pressure on other countries to supply the grain and that's going to be you know, Australia, probably some European countries at this point is wheat really hasn't been in the mix. Although the markets react very, very quickly to any news, any gyrations in terms of what's going on with that.”
In addition, Irey says fertilizer is another important factor in dealing with the Black Sea region.
“They have the cheapest fertilizer in the world. But the Swift banking system which is essentially the electronic banking system is not available to them as a sanction over their invasion of Ukraine.”
This means that Russia cannot get insurance on a product or the ships that are transporting it, according to Irey