Wheat and corn are cheaper in US after the extension of the grain agreement

Published 2023년 3월 20일

Tridge summary

The extension of the 'grain agreement' between Russia and Ukraine for an additional 120 days has led to a decrease in wheat and corn prices. This agreement, also known as the Black Sea 'grain initiative', has played a crucial role in mitigating food inflation by ensuring uninterrupted export flows. However, there is uncertainty and risk due to ongoing disputes between Russia and Ukraine over the extension's length. The article also highlights the potential impact of the extension on the harvesting of winter crops in Ukraine and Russia's negotiating positions under various extension scenarios. The extension's term remains in dispute, with conflicting statements from Ukraine and Russia about the length of the extension.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Wheat and corn fell in price after the extension of the "grain agreement" for another 120 days. This is reported by Bloomberg. Russia's invasion of Ukraine sent wheat futures soaring in the first half of 2022 on fears of major supply disruptions. The introduction of the Black Sea "grain initiative" ensured export flows after and contributed to the reduction of food inflation. Chicago wheat futures were down 1.7% at $6.99 a bushel as of 1:49 p.m. Corn fell 1.1% to $6.28 a bushel, its first decline in five sessions. Despite Monday's decline, disagreements between Russia and Ukraine over the length of the extension are likely to add to the risk compared to if the two sides agreed from the start, says Dennis Woznesensky, agriculture analyst at Rabobank Group in Sydney. "If it lasts only 60 days, it will end right before the harvest of winter crops in Ukraine. At that time, Russia will likely have more opportunities to negotiate, because the world will need more Ukrainian grain in ...

Source: Epravda