June 17 2014, 10:50 Source: APK-Inform Views: 1904

Conflict in Iraq may have great impact on the grain market – expert

Beginning of 2014 was characterized with certain tensions on the global grain market due to the difficult political situation in the Black Sea region. However, the observed escalating conflict in Iraq provides much greater threat to the world grain market, declared Natalia Merkusheva, Economist of the Food and Agriculture Organization of the United Nations, on June 17 during her speech within the international conference Grain Forum – 2014 in Odessa.

According to her, to date there are three scenarios for future development of the situation. The optimistic one - the situation will improve, and the grain market will not suffer. Less optimistic - the conflict will be located within the Iraqi borders. But it will affect the grain market, as the country is one of the world major grain importers, and the demand level may be reduced, due to the conflict, explained N.Merkusheva. The pessimistic scenario is possible in the case of involvement of the neighbouring countries into the conflict.

Such situation development will not only reduce the global demand for grains, but also impact petroleum prices, which are directly tied to formation of grain prices, said N.Merkusheva.


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