Global grain prices rise amid news of Russia’s withdrawal from the grain deal

Wheat futures on the Chicago Board of Trade rose by 4.2% after Russia announced its withdrawal from the grain deal, Bloomberg reports.

“Russia has suspended the Black Sea grain deal, increasing uncertainty about global food supplies by closing an important export route for Ukraine, one of the world’s leading suppliers of wheat and vegetable oils,” the publication writes.

In addition, European wheat futures rose by about 2%, Reuters reports.

“I think there is a belief in the market that Russia and the EU have large wheat stocks that can meet global demand in the coming months until the harvest comes,” a German grain trader said.

Hasnain Malik, the head of capital research at Tellimer Research, believes that the price increase will have the biggest impact on the poorest countries.

“The suspension of the Black Sea deal is not unexpected and could put an end to the recent softening of grain prices. This is bad news for smaller and poorer importers in emerging markets such as Egypt,” the analyst said.

On Monday, June 17, Russia announced its withdrawal from the grain deal. The reason for this decision, according to a Kremlin spokesman, was that “the part concerning Russia has not yet been fulfilled.”

Tags: grain, prices, wheat, Black Sea grain deal