After Russia announced that it was suspending the Black Sea agreement, the price of wheat contracts in Chicago Mercantile Exchange futures rose more than 5 percent to $8.7. Wheat futures on the Chicago Mercantile Exchange (CBOT) rose 5.4 percent to $8.7 as Russia’s withdrawal from the Black Sea Grain Initiative increased global supply concerns. Wheat prices rose to $8.9 in the early hours of the day and stabilized at $8.7 as of 09.25, after seeing the highest level since 14 October. Corn prices also rose 2.2 percent to $6.96 per bushel.
Wheat prices broke a record with 13.6 dollars in March.
Wheat prices rose to 13.6 dollars in March, breaking records in international markets, with the Russian-Ukrainian war bringing supply problems to the agenda and the effect of rising energy prices. Since Russia and Ukraine are among the world’s largest wheat suppliers, grain markets are sensitive to developments in Moscow’s eight-month war against Kiev. Despite the sharp movements in wheat in the first half of this year, the recent decreases in wheat prices were remarkable. While the downward trend in the commodity market continued as the global aggressively tightening monetary policies increased recession concerns, significant sales were also seen in wheat. Although the concerns about the Russia-Ukraine war continued, the reopening of grain exports from Ukraine with Russia’s Black Sea Grain Initiative increased the selling pressure on agricultural commodities and wheat prices decreased to 7.4 dollars.
Russia’s withdrawal from the Black Sea Grain Initiative
The Russian Ministry of Defense reported that on October 29, Ukraine carried out an attack on Russian warships and civilian ships in the city of Sevastopol in annexed Crimea. 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 Black Sea Navy ships were involved in the process of ensuring the security of the corridor created under the grain agreement. In the statement of the ministry, it was stated that “Kiev, with the participation of British experts, carried out a terrorist act against the ships of the Black Sea Fleet and civilian ships involved in securing the grain corridor.” “Considering the terrorist act, the Russian side suspended its participation in the implementation of agreements on the exit of agricultural products from Ukrainian ports,” the statement said. expressions were used. 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 July 22.