Heatwave Hits Eastern European Agriculture Hard
The summer of 2024 is proving to be a challenging one for Eastern European countries, particularly Ukraine and Romania, key corn suppliers.
Unusual temperatures above 38 degrees Celsius have hit Ukraine, affecting corn pollination and leading to an expected harvest decline of 20-30%. Romania is facing a drought that has damaged crops on over 2 million hectares, prompting a request for over €500 million in EU aid.
Commodities traders in Germany remain calm as the country imports from neighboring EU nations, but supply chain disruptions in Spain may affect the wider EU’s need to import more corn.
Despite the challenges, global corn supply is currently ample, keeping prices steady. Concerns over reduced corn harvests are compounded by the impact of the Ukraine war on grain exports via Black Sea routes.
While the global food supply remains stable for now, disruptions in key shipping routes could lead to price increases. The international agricultural trade is already shifting towards increased corn imports from the US, affecting feed prices in the EU.