Worldwide wheat, corn, and soybean prices experienced a decline despite Russia’s decision to withdraw from the agreement regarding grain exports from Ukraine via the Black Sea route.
On the CBOT commodities exchange, wheat witnessed a drop of over 2 percent, while corn shed over 1 percent, and soybeans also experienced a decrease in price.
The situation arose after Kremlin spokesman Dmitry Peskov stated that Russia would not resume the deal to export grain from Ukraine via the Black Sea route due to unmet conditions.
UN Secretary-General Antonio Guterres urged Russia to reconsider its stance and return to the grain export agreement.
Russian President Vladimir Putin defended Russia’s withdrawal from the agreement, stating that it had lost its significance.
The announcement of Russia’s withdrawal from the grain export agreement came on July 17. Russia cited the lack of enforcement of the agreement on its part as the reason behind the decision. Consequently, exports of cereals and fertilizers from Russia remain restricted.
The agreement had been mediated by the United Nations and Turkey in July the previous year, aiming to alleviate a global food crisis that had arisen due to Russia’s aggression against Ukraine in February.
In the aftermath of withdrawing from the grain export agreement, Russia has been involved in attacks on Ukrainian ports in the Black Sea, raising concerns about the safety of ships navigating the region. Russia’s presumption that ships might be carrying military equipment for Ukraine further exacerbates the tensions surrounding maritime trade in the Black Sea area.
The situation has garnered international attention, with the UN urging Russia to reconsider its decision and resume the grain export agreement. As global grain prices continue to be impacted by geopolitical developments, market participants will closely monitor any further updates and actions taken by the involved parties. The uncertainty surrounding grain exports from the Black Sea region could have far-reaching consequences on food supplies and prices worldwide.