- Wheat and corn futures fell Wednesday as Russia rejoined an agreement that allows grain exports from Ukraine.
- Russia withdrew from the deal, saying it couldn’t guarantee the safety of civilian ships crossing the Black Sea because its navy had been attacked by Ukrainian drones.
- Exports were expected to resume on Wednesday.
Wheat and corn futures fell Wednesday as Russia decided to rejoin an agreement that allows crucial grain exports from Ukraine.
Russia will once again allow Kyiv to ship grain from the Black Sea under a program first brokered by the United Nations in July, according to news reports. Exports had been interrupted after Russia launched its war against Ukraine in late February.
December wheat futures at the Chicago Board of Trade on Wednesday fell 5.9% to $8.49 a bushel, and December corn futures lost 1.9% to $6.84 a bushel.
Turkish President Tayyip Erdogan said Russian Defense Minister Sergei Shoigu told his Turkish counterpart that operations under the agreement would resume mid-day Wednesday, according to the Financial Times.
Russia on Saturday withdrew from the agreement, saying it couldn’t guarantee the safety of civilian ships crossing the Black Sea because its navy had been attacked by Ukrainian drones. Ukraine said that was a false pretext, according to Reuters.
Russia’s defense ministry said it had received written guarantees from Ukraine not to use the Black Sea grain corridor for military operations against Russia, Reuters reported.
“The Russian Federation considers that the guarantees received at the moment appear sufficient, and resumes the implementation of the agreement,” the Russian ministry said in a statement, according to the Reuters report.
Ukraine has been called the ‘”breadbasket of Europe” because of its high market share of exports of wheat, corn, and other grains.
