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Why Russia’s pullout from Ukraine grain deal will impact prices in Canada

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Russia’s recent pullout from a deal that allowed Ukraine to export grain will likely impact prices in Canada.

“Both Russia and Ukraine are very large grain producers,” Opher Baron, a professor of operations management at the University of Toronto’s Rotman School of Management, told CTVNews.ca Tuesday. “Any long-lasting shortage of grains export from either would change the price of grain, as it is a global commodity.”

On Saturday, Russia announced that it was immediately pulling out of a deal that allowed ships to export grain from Ukrainian ports.

Brokered in July by the United Nations and Turkey, the short-lived deal saw more than nine million tons of grain leave Ukraine on 397 ships. Other food stuffs and fertilizer were also allowed safe passage via a humanitarian corridor in the Black Sea. According to the UN, the grain agreement helped bring down global food prices by about 15 per cent, after they rose sharply following Russia’s February 2022 invasion.

“It affects everything because it’s about 15 per cent of all calories consumed on Earth,” Dalhousie University food security expert Sylvain Charlebois told CTVNews.ca. “You’re basically seeing a global breadbasket being impacted by geopolitics and a huge conflict.”

The UN, Ukraine and Turkey plan to continue the program, and 12 vessels were reportedly able to leave Ukraine as of Monday. It remains to be seen if or when Russia will forcefully reimpose its earlier blockade on Ukrainian ports.

“I think it’s really an unfortunate turn that the pact has ended,” Charlebois, who is a professor and the senior director of Dalhousie’s Agri-Food Analytics Lab, said. “It doesn’t bode well for the future. It’s going to be extremely difficult for Ukraine to mobilize anything, which will discourage farmers to grow anything, which will eventually impact wheat prices around the world. And that’s kind of what we’re starting to see the last couple of days, unfortunately.”

According to Statistics Canada, the world’s largest exporters of wheat in 2021 were Russia, the U.S., Australia, Canada and Ukraine; that’s since been upended by war and sanctions.

In the wake of Russia’s February 2022 invasion of Ukraine, a June 29 Statistics Canada report showed prices of bread, pasta and cereal were up from more than 12 per cent to nearly 20, while total stocks of Canadian wheat were down by almost 40 per cent. Food manufacturers meanwhile were paying almost 75 per cent more for wheat in April 2022 than they were a year prior. Canada produces most of the wheat it consumes, which still leaves plenty available for export.

Higher domestic production in 2022 over 2021, and the re-opening of Ukrainian ports for wheat exports in late July, saw prices dip in October Statistics Canada analysis reported. Prices however began climbing again following news of Russia’s pullout from the Ukraine grain deal.

Wheat futures rose to over US$9 a bushel on Tuesday, up from almost US$8.30 on Friday, according to Nasdaq. On Nov. 1, 2021, prices were under US$8.

“When prices move globally, so are the prices locally,” Baron from the University of Toronto explained. “Luckily, given we are a very large player in the grain market ourselves and that supply chain cost in a local market are lower than in a global one, the relative price increase end consumers may face is not large.”

Charlebois says that although Canadian may have to pay higher prices in places like the bakery due to Russia’s actions in Ukraine, because we produce so much wheat ourselves, Canada won’t fall victim to the kind of global food insecurity that could affect places like Europe, the Middle East and North Africa, which rely heavily on imports.

“With geopolitics, the problem is that there’s lots of uncertainty and uncertainty will come at a price,” Charlebois added. “So baked into the US$9 per bushel right now there’s uncertainty, and uncertainty will force companies to pay more for grains, no matter where you are around the world.”

With files from CNN and the Associated Press

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Alouettes receiver Philpot announces he’ll be out for the rest of season

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Montreal Alouettes wide receiver Tyson Philpot has announced he will be out for the rest of the CFL season.

The Delta, B.C., native posted the news on his Instagram page Thursday.

“To Be Continued. Shoutout my team, the fans of the CFL and the whole city of Montreal! I can’t wait to be back healthy and write this next chapter in 2025,” the statement read.

Philpot, 24, injured his foot in a 33-23 win over the Hamilton Tiger-Cats on Aug. 10 and was placed on the six-game injured list the next week.

The six-foot-one, 195-pound receiver had 58 receptions, 779 yards and five touchdowns in nine games for the league-leading Alouettes in his third season.

Philpot scored the game-winning touchdown in Montreal’s Grey Cup win last season to punctuate a six-reception, 63-yard performance.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.



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David Lipsky shoots 65 to take 1st-round lead at Silverado in FedEx Cup Fall opener

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NAPA, Calif. (AP) — David Lipsky shot a 7-under 65 on Thursday at Silverado Country Club to take a one-stroke lead after the first round of the Procore Championship.

Winless in 104 events since joining the PGA Tour in 2022, Lipsky went out with the early groups and had eight birdies with one bogey to kick off the FedEx Cup Fall series at the picturesque course in the heart of Napa Valley wine country.

After missing the cut in his three previous tournaments, Lipsky flew from Las Vegas to Arizona to reunite with his college coach at Northwestern to get his focus back. He also spent time playing with some of the Northwestern players, which helped him relax.

“Just being around those guys and seeing how carefree they are, not knowing what’s coming for them yet, it’s sort of nice to see that,” Lipsky said. “I was almost energized by their youthfulness.”

Patton Kizzire and Mark Hubbard were a stroke back. Kizzire started on the back nine and made a late run with three consecutive birdies to move into a tie for first. A bogey on No. 8 dropped him back.

“There was a lot of good stuff out there today,” Kizzire said. “I stayed patient and just went through my routines and played well, one shot at a time. I’ve really bee working hard on my mental game and I think that allowed me to rinse and repeat and reset and keep playing.”

Mark Hubbard was at 67. He had nine birdies but fell off the pace with a bogey and triple bogey on back-to-back holes.

Kevin Dougherty also was in the group at 67. He had two eagles and ended his afternoon by holing out from 41 yards on the 383-yard, par-4 18th.

Defending champion Sahith Theegala had to scramble for much of his round of 69.

Wyndham Clark, who won the U.S. Open in 2023 and the AT&T at Pebble Beach in February, had a 70.

Max Homa shot 71. The two-time tournament champion and a captain’s pick for the President’s Cup in two weeks had two birdies and overcame a bogey on the par-4 first.

Stewart Cink, the 2020 winner, also opened with a 71. He won The Ally Challenge last month for his first PGA Tour Champions title.

Three players from the Presidents Cup International team had mix results. Min Woo Lee shot 68, Mackenzie Hughes of Dundas, Ont., 69 and Corey Conners of Listowel, Ont., 73. International team captain Mike Weir of Brights Grove, Ont., also had a 69.

Ben Silverman of Thornhill, Ont., had a 68, Nick Taylor of Abbotsford, B.C., and Roger Sloan of Merritt, B.C., shot 70 and Adam Svensson of Surrey, B.C., had a 71.

Lipsky was a little shaky off the tee for much of the afternoon but made up for it with steady iron play that left him in great shape on the greens. He had one-putts on 11 holes and was in position for a bigger day but left five putts short.

Lipsky’s only real problem came on the par-4 ninth when his approach sailed into a bunker just shy of the green. He bounced back nicely with five birdies on his back nine. After missing a 19-foot putt for birdie on No. 17, Lipsky ended his day with a 12-foot par putt.

That was a big change from last year when Lipsky tied for 30th at Silverado when he drove the ball well but had uneven success on the greens.

“Sometimes you have to realize golf can be fun, and I think I sort of forgot that along the way as I’m grinding it out,” Lipsky said. “You’ve got to put things in perspective, take a step back. Sort of did that and it seems like it’s working out.”

Laird stayed close after beginning his day with a bogey on the par-4 10th. The Scot got out of the sand nicely but pushed his par putt past the hole.

Homa continued to have issues off the tee and missed birdie putts on his final four holes.

___

AP golf:

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Canada’s Marina Stakusic advances to quarterfinals at Guadalajara Open

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GUADALAJARA, Mexico – Canada’s Marina Stakusic is moving on to the quarterfinals of the Guadalajara Open.

The Mississauga, Ont., native defeated the tournament top seed, Jelena Ostapenko of Latvia, 6-3, 5-7, 7-6 (0) in the round of 16 on Thursday.

Stakusic faced a 0-4 deficit in the third and final set before marching back into the match.

The 19-year-old won five of the next six games to even it up before exchanging games to force a tiebreaker, where Stakusic took complete control to win the match.

Stakusic had five aces with 17 double faults in the three-hour, four-minute match.

However, she converted eight of her 18 break-point opportunities.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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