“‘The initiative for safe transportation of agricultural products across the Black Sea has been extended for another 120 days,’ Oleksandr Kubrakov, Ukraine’s infrastructure minister, said on Thursday. ‘This decision was just taken in Istanbul. The UN and Turkey remained guarantors of the initiative,’ he added.”
The FT writers explained that, “Since the deal took effect on August 1 ‘Ukraine has exported more than 11mn tonnes of agricultural products to 38 countries around the world‘, Kubrakov said. ‘This is a significant amount, but not enough. The world market cannot replace Ukrainian agricultural products in the near future. At the same time, it is possible to increase the amount of our food for the world,’ he added.
“Ukrainian president Volodymyr Zelenskyy confirmed the agreement in a tweet on Thursday. Kubrakov said Ukraine had requested an extension of the agreement for at least a year and for it to include ports in the Mykolayiv region in addition to the three ports in Odesa province that are part of the deal.”
Grain Deal will be prolonged for 120 days. 🇺🇦 together with @antonioguterres and @RTErdogan made key decision in the global fight against the food crisis. Waiting for official announcement from partners - 🇹🇷 and 🇺🇳.
Wall Street Journal writer William Mauldin reported today that, “Grain prices fell sharply after the U.N. announcement. Wheat prices dropped 1.7% to $8.04 a bushel and corn prices were down close to 1% to $6.59 a bushel.”
I welcome the agreement by all parties to continue the Black Sea Grain Initiative to facilitate the safe navigation of export of grain, foodstuffs and fertilizers from Ukraine.
The initiative demonstrates the importance of discreet diplomacy in finding multilateral solutions.
The Reuters article noted that, “Since July, some 11.1 million tonnes of agricultural products have been shipped under the grain deal, including 4.5 million tonnes of corn and 3.2 million tonnes of wheat.
“Wheat prices on the Chicago Board of Trade fell following the news that the agreement would be extended with the benchmark contract down 2.75% at $7.95 a bushel while corn prices fell 1.3% to $6.60-1/2 a bushel.”
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
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