Wheat falls to 10-week low as Ukraine grain deal is extended – 15 March
15 Mar 2023
- Wheat prices fell on Thursday after Ukraine and Turkey verified that the deal to guard exports of grain and toxins from Ukraine will be extended by 120 days. By 0445 ET (0945 GMT), U.S. Wheat Futures were down2.7 at$7.95 a bushel, their smallest in two and a half months.
- U.S. Corn Futures fell 1.2 to$6.56 a bushel. Turkey’s President Recep Tayyip Erdogan, who brokered the original deal with the backing of the UN, blazoned via social media that” the agreement on the Black Sea Corridor is to be extended from November 19th by 120 days,” corroborating earlier adverts out of Kyiv.
- Russia’s Foreign Ministry, meanwhile, verified to the news agency TASS that it” doesn’t intend to break up the deal.” UN Secretary-General António Guterres also ate the deal, saying” the action demonstrates the significance of discreet tactfulness in chancing multinational results.”
- The extension of the deal is a significant relief to world food requests, which have replied poorly to a war in Ukraine that has disintegrated inventories from two of the world’s most important exporters. The deal has allowed Ukraine to export over 11 million tons of foodstuffs since it was agreed upon in the summer, easing a brewing food extremity in some of the world’s poorest countries.
- The news had been anticipated, but prices had still bedded a threat of the deal being abandoned after some equivocal Russian statements in recent days and amid ongoing jitters about the explosion of a bullet on a Polish home on Tuesday, which compactly hovered an escalation of the war.
- Russia had claimed on new guarantees that its exports of ammonia- a crucial input for nitrate diseases- would not be sanctioned as a precondition for extending the deal. still, it appears to have accepted an extension indeed without them.
- Reuters reported that the question of Russian ammonia exports was still under discussion. Before the war, Russia exported over 2 million tons of ammonia annually through a channel that runs from Togliatti on the Volga to the Ukrainian harborage of Odesa.
- Reports suggested that Ukrainian President Volodymyr Zelensky is averring that Russia agrees to a comprehensive exchange of captures before giving the green light to Russian ammonia exports.