Russia ends participation in Black Sea grain deal
Russia says it’s pulling out of the Black Sea Grain Initiative.
Greg McBride, director of brokerage with Allendale, says the deal that had allowed Ukraine to export ag products through the Black Sea is over for now.
“They do not feel like their grain export or fertilizer export needs have been met,” McBride said. “That’s why, rather than automatically renewing this one like they have done in the past, they said we would have a hard stop on this one.”
John Newton, chief economist for Senate Ag Republicans, tells Brownfield this could lead to volatility in the grain markets. “The last time we saw a major conflict around the world was when we had very high food prices,” Newton said. “I think all eyes are on Russia and Ukraine and all eyes are on this agreement.”
McBride says prices soared higher Monday morning but then began to back off. “It’s a buy the rumor sell the fact type of mentality in this market,” he said.
McBride says food security will be a big concern moving forward as Ukraine is one of the top agricultural producers in the world.