The US fears rising grain prices due to the termination of the “grain initiative”

The United States has expressed concern about rising grain prices due to the collapse of the Black Sea Grain Initiative. U.S. Secretary of State Anthony Blinken told reporters on Monday.

“Today’s actions by Russia resulted in… rising prices, we are already seeing the markets react to this, prices are already rising… The agreement needs to be restored as soon as possible,” he said.

As reported, the day before, the Russian Foreign Ministry officially announced that without Russia’s participation, the Black Sea Initiative would cease to function on July 18. Among the main reasons for refusing to extend the grain deal, the ministry cited a ban on the import of spare parts and equipment for the production of agricultural products and fertilizers into Russia, and the freezing of accounts of Russian agricultural companies.

It is also noted that the conditions for the resumption of the Togliati-Odesa ammonia pipeline and the connection of Rosselkhozbank to the SWIFT international system have not been met.

After that, the price of wheat futures on the Chicago Board of Trade jumped by 4.2%.

Tags: wheat, USA, Black Sea grain corridor, prices