Wheat Prices Jump After Russia Pulls Out of Deal Allowing Grain Shipments From Ukraine

Wheat futures jumped but then reversed course after Russia announced it was pulling out of a deal brokered by the United Nations allowing Ukraine to export grain through the Black Sea.

The move came just hours before the agreement signed in Istanbul, Turkey last July was to expire.

Moscow said the UN has not been holding up its part of the Black Sea Grain Initiative.

“Only if concrete results are received, not promises and assurances, will Russia be ready to consider resuming the ‘deal,’” said The Russian Foreign Ministry said in a translated Facebook post.

Ukraine is one of the world’s biggest suppliers of wheat, and following Russia’s invasion, Moscow blocked grain shipments from leaving the country until the United Nations and Turkish President Recep Tayyip Erdogan hammered out a plan to end the blockade.

Russia’s decision has raised concerns about food supplies, especially in poorer nations that rely on Ukraine for their grain. European Commission President Ursula von der Leyen wrote on Twitter that she “strongly condemns Russia’s cynical move to terminate the Black Sea Grain agreement,” adding that the European Union (EU) “is working to ensure food security for the world’s vulnerable.”

Wheat prices initially jumped 3.5% on the news but turned negative later in the session.

Tags: grain, European Union, wheat, Black Sea, shipments, futures, deal, United Nations, Ukraine, Black Sea Grain Initiative, Russia, export