Wheat Prices Rise As Missile Strike Threatens Ukraine Export Pact

• Russia, Ukraine, the United Nations, and Turkey signed the deal on Friday, July 22, 2022, to reopen three Ukrainian Black Sea ports for grain exports. The deal is valid for 120 days and targets monthly exports of 5 million tonnes of grains.
• Ukraine pressed ahead on Sunday, July 24, 2022, with efforts to restart grain exports from its Black Sea ports under the new deal but warned that deliveries would suffer if a Russian missile strike on Odesa was a sign of more to come.
• Wheat futures on the Chicago Board of Trade rose nearly 4% to $7.86 a bushel on Monday, July 25, 2022, regaining much of the ground lost on July 22, 2022, as prices fell nearly 6% after the pact was announced. Moreover, Chicago corn futures rose 2% to $5.75-3/4 a bushel while soybeans were 0.9% up at $13.28 a bushel. This came as a missile strike on the Ukrainian port of Odesa over the weekend raised doubts about whether it will be possible to implement last week's agreement to open a corridor for grain exports from the war-torn country.
• The Kremlin said on Monday, July 25, 2022, that the missile strike would not affect the export of grain. However, along with the uncertainty about how long it will take to clear the mines, ship owners are skeptic of sailing to Ukraine, regardless of the freight rate as they think their ship will be hit by missiles.
• The decline in shipments from one of the world's biggest grain exporters has helped to fuel food inflation across the globe and U.N. agencies have warned it could lead to starvation and mass migration on an unprecedented scale if exportation is not resumed.

(Source: Investing.com)