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Russia strikes vessel in Black Sea, shipments continue

An ag economist says tensions remain high in the Black Sea Region.

Allendale chief strategist Rich Nelson says a recent report indicates Russia attacked a ship near a port in Ukraine’s Odesa region.

“The trade did have a little spike up in terms of Wednesday’s trade higher,” he said. “Keep in mind, however the trade focus is still based on the idea that Russian overage in wheat exports so far are still overshadowing what is a decline in Ukraine wheat exports in recent months.”

He tells Brownfield no progress has been made on a return to the Black Sea Grain Initiative, a deal originally brokered by the United Nations and Turkey in July 2022 that allowed Ukraine to export ag goods through the Black Sea.

“In the current trade’s mindset, they’re probably not too interested on this story,” Nelson said. “They still feel that whether Russia is involved or not, that they’re going to get that Ukraine grain either way.”

Nelson says he doesn’t expect Ukraine to halt grain shipments despite the recent vessel strike.