Russia Still Calls for 60 Day Extension of Black Sea Grain Initiative, as Global Grain Stocks Seen Lower

Reuters writer Michelle Nichols reported yesterday that, “The United Nations backed Turkey and Ukraine on Thursday by calling for a 120-day rollover of an agreement allowing the safe export of grain from several Ukrainian Black Sea ports after Russia said it would only extend the pact for 60 days.

“The pact is due to expire on Saturday. It was brokered with Russia and Ukraine by the United Nations and Turkey in July – and renewed in November – to combat a global food crisis that was fueled in part by Russia’s Feb. 24, 2022, invasion of neighboring Ukraine and blockade of its Black Sea grain exports.

‘For us, the text in the agreement is clear and it calls for a 120-day rollover,’ U.N. spokesman Stephane Dujarric told Reuters when asked about remarks by Turkey.

Also yesterday, Reuters writer Laurie Chen reported that, “China hopes the Black Sea grain deal can be implemented in a balanced and comprehensive manner, foreign ministry spokesperson Wang Wenbin said on Thursday, adding that China would like to strengthen communication with all parties and enhance global food security.

“The comments were in response to a question at a regular press briefing about Russia’s proposal to renew the Black Sea Grain Initiative for 60 days, half the term of the previous renewal.”

Reuters News reported today that, “The Kremlin on Friday said Russia was extending the Black Sea grain deal for 60 days, echoing previous statements by the Russian Foreign Ministry.”

The article added that, “Alessandra Vellucci, director of the U.N. Information Service, said negotiations on an extension were continuing.”

Reuters writer Naveen Thukral reported today that, “Wheat rose 0.9% and was poised for a first weekly gain in five weeks as the market awaited renewal of a Russia-Ukraine export deal, while corn edged higher amid Chinese buying.”

The article noted that, “Global grains production is forecast to rise in the 2023/24 season but not enough to prevent a drawdown in stocks, the International Grains Council (IGC) said.

“The inter-governmental body, issuing its first full set of projections for 2023/24, put grains production at 2.283 billion tonnes, up from 2.250 billion in the prior season.

“Grains consumption was expected to climb to 2.288 billion tonnes from 2.261 billion, leading to a small decline in carryover stocks to 580 million tonnes from 586 million.”