Wheat prices jump as Russia halts Black Sea grain deal

UK feed wheat futures jumped to £202.80/t on Monday 17 July following news of a suspension of the Black Sea grain deal by Russia.

Prices rose by £6.50/t for the November contract compared with last week’s close on 14 July.

The deal between Russia and Ukraine was first established in July 2022 and was due to expire on 17 July after several previous extensions.

See also: Global grain markets volatile with Black Sea deal in doubt

In total, 32.9m tonnes of agricultural commodities have been exported via the grain corridor since its inception, including 17m tonnes of maize and 9m tonnes of wheat.

A Kremlin spokesman said part of the agreement concerning Russia has not been implemented so far, so its effect is terminated, according to Reuters news agency.

However, the spokesperson added that once the Russian part of the agreements is fulfilled, the deal would be re-implemented immediately.

Global markets are reacting to the news, and Chicago and Paris wheat futures prices have both increased following the announcement.

Grain has also been exported out of Ukraine using road and rail links, but this has put increased pressure on grain markets in eastern Europe.

In April, the EU Commission took preventative measures to limit imports from Ukraine after a number of eastern European countries, including Poland, Hungary, and Slovakia, imposed their own temporary import bans on Ukrainian agricultural goods.

“Solidarity lanes” were introduced in these countries to allow the grain to pass through eastern Europe without flooding domestic markets.