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Internationally Wheat Trading Price Hits at 2-Week High after Russia Pulls Out of Black Sea Agreement

CHICAGO: Wheat Trading Price were around two-week highs of $8.8 per bushel to kick off November, after Russia decided to end participation in an agreement that allowed grain exports from Ukraine, following an attack on its ships in the port of Sevastopol in the annexed Crimea.

Both Russia and Ukraine are among the world’s largest wheat exporters and an agreement has been put in place in July to let the secured passage of grains on the Black Sea.

Such deal has helped to alleviate pressure on the wheat trading price which skyrocketed to record high $12.8 per bushel in May of 2022, while lower grain demand and easing supply concerns have also weighed.

No ships moved through the established maritime humanitarian corridor on Sunday, but the United Nations agreed with Ukraine and Turkey to unblock 16 grain ships.

While in Pakistan ECC  Monday approved to sign a government-to-government deal worth $112 million with a Russia state corporation for the import of 300,000 metric tons of wheat – the first state-level import deal in the past two years with Moscow.

However, the government remained unable to resolve the long outstanding issue of opening a bank revolving account to save the Chinese energy companies from the circular debt and came up with an interim solution to set up a mere Rs4 billion monthly fund.

The Economic Cooperation Committee ( ECC ) of the Cabinet took these decisions of procurement of Russia  wheat and opening an energy fund in place of a Revolving Bank Account.

Finance Minister Ishaq Dar chaired the ECC meeting hours before departing for China.