Wheat Prices Extends the Decline After Grain deal resumed

CHICAGO :  Wheat Prices  extended losses to $8.3 per bushel, after hitting $9 early in the week, after trade for vessels carrying grain out of Ukrainian Black Sea ports resumed operations.

Russia announced on Wednesday that it agreed to resume the trade deal guaranteeing a safe corridor for vessels carrying grain after its demands have been met by Ukrainian counterparts.

The move came after Moscow suddenly decided to end cooperation of the agreement in the end of October, citing security concerns that were denied by Kyiv.

7 ships carrying agricultural products left Ukrainian Black Sea ports on Thursday, carrying 290,000 tonnes of food products to European and Asian countries, the Ukrainian infrastructure ministry said.

Besides increasing worldwide supply, the continuation of exports out of Ukraine will free much needed storage space for the incoming harvest, alleviating worries of global food shortages that sent wheat prices grain to a record-high $12.8 in May.

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.