Wheat prices on the Chicago futures market remained stable despite Russia’s termination of the grain deal.
The grain deal allowed grain from Ukraine – one of the world’s leading producers – to be exported through the Black Sea despite the war. Russia did not renew the deal.
While wheat prices fell on Monday, they stabilised on Tuesday. Analysts say it remains to be seen what the effects of ending the grain deal will be.
“The main question is whether Ukraine will continue to export through the Black Sea without the security of the grain corridor,” said Dennis Voznesenski, an analyst at Rabobank.
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The deal, originally signed between Russia, Ukraine, and Turkey, allowed cargo ships to pass through the Russian-blockaded Black Sea from the ports of Odesa, Chornomorsk, and Yuzhny/Pivdennyi.
For its part, Russia frequently complained that the agreement was being exploited to facilitate shipments of grain to richer countries, whereas the deal was intended to help support poor countries most at risk of starvation.
