Future of Black Sea grain deal up in the air

An ag economist says negotiations to extend the Black Sea Grain Initiative have stalled.

Greg McBride, Director of Brokerage with Allendale, tells Brownfield the current deal expires May 18th.

“Russia still feels like they are not getting anything out of it,” he said. “They are not getting to ship as much as they would like to out of the Black Sea. There is a potential they could cut this whole thing off.”

The agreement allows Ukraine to export grain through the Black Sea.

He says wheat prices have been impacted by the uncertainty in the Black Sea Region. “If that whole deal goes away, we could be looking for higher prices.”

Chicago wheat futures hit a 21-month low this week.

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