“Ukraine and Russia signed two separate agreements in Istanbul to resume grain exports from three Ukrainian ports. However, the agreements were already called into question again just one day after they were signed because of a Russian missile attack on the port of Odessa,” writes Carsten Fritsch, Analyst Energy, Agriculture, Precious Metals at Commerzbank.
Additional Quotes:
“The wheat price on CBOT fell by almost 6% to around 760 US cents per bushel in the September contract, which was the lowest closing level for the most actively traded contract since the beginning of February. The European wheat price on Euronext in Paris (also expiring in September) closed down 7% at just over EUR 325 per ton. The most actively traded contract (December maturity) fell in the meantime to a 5-month low of just over EUR 310 per ton.”
“The agreement was called into question just one day after it was signed because of a Russian missile attack on the port of Odessa. Russia had committed itself in the agreement not to attack the ships and the ports. Accordingly, wheat prices rose again at the beginning of the week. This shows how fragile the hope is that there will be a quick and smooth resumption of grain exports from Ukraine. This is necessary for wheat prices to fall sustainably.”