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Black Sea deal faces uncertain future

The Black Sea Grain Initiative is set to expire on Monday and an ag economist says the deal is not likely to be renewed.

Jim McCormick with AgMarket.Net says Russian President Vladimir Putin is frustrated with Turkey after it recently agreed to support Sweden’s bid to join NATO.

“Putin is really putting on the pressure saying he’s going to walk away from this deal,” he said. “Earlier this week, there were reports he actually sent drones to attack some of the sites in Odessa.”

The grain deal has allowed Ukraine to export ag products through the Black Sea since it was first brokered last July.

McCormick tells Brownfield the United Nations is working to save the agreement to prevent a rise in global food prices.

“It will scramble where the world gets its grain from, specifically wheat and corn,” he said. “It could force some demand back to the United States as the world buyers will need to find a new supplier.”

This would be the fourth extension of the deal and McCormick says previous renewals have also come down to the wire.