Home WORLD EUROPA Wheat returns to pre-Russian invasion price after Moscow-kyiv deal | War...

Wheat returns to pre-Russian invasion price after Moscow-kyiv deal | War in Ukraine

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In Chicago, a bushel of wheat (about 27 kg) for September delivery fell 5.86% to US$7.59 (about C$9.80) and thus returned to its pre-invasion price. Ukraine by Russia on February 24.

In the aftermath, corn, which Ukraine also produces, slipped 1.99% to US$5.6425 (about C$7.30) a bushel for same-month delivery.

Ukraine and Russia ended up signing in Istanbul on Friday, along with Turkey andUNa hard-negotiated agreement that will establish secure corridors intended to allow the circulation of merchant ships in the Black Sea.

Markets hope it will relieve countries dependent on the Russian and Ukrainian markets, which together account for 30% of world wheat trade.

I hardly expected this given that the Russians are advancing further east and approaching the port of Odessacommented for AFP Michael Zuzolo, president of the brokerage and analysis company Global Commodity Analytics and Consulting.

This surprised me and the market reaction suggests that there was a wheat premium in the market, particularly in Europe and to a lesser extent in Chicago futures, until this news broke.he noted.

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On Euronext, a tonne of soft wheat for September delivery closed at 325.75 euros (about CA$428), falling 6.41%.

Gautier Le Molgat, analyst at Agritel, however recalled the uncertainties raised by the concrete implementation of these maritime corridors.

Michael Zuzolo also stayed skeptical.

I don’t think I’m the only one who doubts that it will move a lot of grain given what we’ve been through over the last couple of months with the movement of grain by rail out of the Ukrainian areas through the areas Russians, then by boat to the Sea of ​​Azov, then in the Black Sea to Turkey and to North Africahe said.

The analyst wondered if the price of wheat and corn would continue to fall given the weakness of the US dollar and the drought affecting crops in France, Romania and Spain.

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