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Russia resumes Ukraine export agreement

Russia is returning to a grain export agreement with Ukraine after a four-day suspension.

Greg McBride with Allendale says this means Ukraine can resume exporting grain safely through the Black Sea Region.

“What they are doing is moving (grain) from Ukraine, or even Russia, to Turkey,” he said. “They are having it inspected, and then moving it onto its final destination.”

He tells Brownfield the reversal caused wheat futures to drop sharply overnight.

“When this kind of thing happens, you see the concern for food security,” McBride said. “That’s where you see the markets like rice and wheat to go through the roof. Now, they’ve started to back off a little bit. Same thing with the oats, and now you just undid everything that you did earlier this week.”

The deal expires November 19th and all countries involved will have to agree to an extension.