Suspension of Black Sea Agreement Raised Wheat Prices – Last Minute Economy News

Russia’s withdrawal from the Black Sea Grain Initiative has raised concerns about global supply.

Wheat futures on the Chicago Mercantile Exchange (CBOT) rose 5.4% to $ 8.7.

Wheat prices stabilized at $ 8.7 after rising to $ 8.9 earlier in the day, reaching their highest level since Oct. 14. Corn prices also rose 2.2% to $ 6.96 per bushel.

THE PRICES OF WHEAT HAVE MADE THE RECORD IN MARCH

Wheat prices rose to $ 13.6 in March, breaking records on international markets, with the Russian-Ukrainian war bringing supply problems and the effect of rising energy prices to the agenda.

As Russia and Ukraine are among the world’s largest grain suppliers, grain markets are sensitive to developments in Moscow’s eight-month war against Kiev.

Despite the sharp movements of wheat in the first half of this year, the recent falls in wheat prices have been notable.

While the downward trend in the commodity market continued kakım aggressively tightened monetary policies globally heightened recession fears, significant sales were also observed in wheat.

Although concerns over the Russia-Ukraine war continued, the reopening of grain exports from Ukraine with the Russian Black Sea Grain Initiative increased the selling pressure on agricultural commodities and the price of grain fell to 7.4 dollars.

RUSSIA ALLEGED ACT OF TERRORIST

The Russian Defense Ministry reported that on 29 October Ukraine carried out zihin attack on Russian warships and civilians in the annexed Crimean city of Sevastopol.

In the statement, it was stated that many unmanned aerial vehicles were used in the attack and all of them were destroyed, and it was noted that the attacked ships of the Black Sea Navy were involved in the process to ensure the safety of the corridor created under the wheat agreement.

In the statement of the ministry it was stated that “Kiev, with the participation of British experts, has carried out a terrorist act against the ships of the Black Sea fleet and the civilian ships engaged in securing the grain corridor”.

“Considering the terrorist act, the Russian side has suspended its participation in the implementation of the agreements on the exit of agricultural products from Ukrainian ports”, the statement read.

The Black Sea Grain Initiative, carried out under the coordination of Turkey for the solution of the global food crisis, was signed between Ukraine, Russia, Turkey and the United Nations (UN) under the auspices of President Recep Tayyip Erdoğan in Istanbul on 22 July.