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Black Sea grain deal gets two-month extension

The Black Sea Grain Initiative has been extended for two more months.

Jim McCormick with AgMarket.Net tells Brownfield Russia had repeatedly threatened to back out of the agreement.

“The market, interesting enough, always seemed to have confidence a deal would get done,” he said. “You had never really seen any risk premium really getting put back into the corn or the wheat market.”

McCormick says the announcement will likely pressure U.S. commodity prices.

“Had it been shut down, it would have forced some demand back to the United States,” he said. “Since that corridor is going to stay open, we are now going to continue to drive prices lower to get price competitive with the world market pricing.”

The deal was set to expire on Thursday.

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