Wheat price plummets as Russia and Ukraine agree on grain shipping deal

Freight corridor for bulk carriers reopens.

Russia has agreed on Wednesday to resume its participation in an agreement brokered by Turkey and the UN to ship grain and other raw materials out of Ukraine’s ports during Russia’s invasion of Ukraine.

That is what Turkish President Recep Tayyip Erdogan says according to AP.

Erdogan says Russian Defense Minister Sergei Shoigu informed Turkish Defense Minister Hulusi Akar that the agreement on a humanitarian grain corridor will “continue as before” as of midday Wednesday.

Ukraine is a major producer and exporter of a number of grain products, and the war with Russia has contributed to a significant increase in prices.

The wheat spot price plummets after today’s announcement. This is good news – also for the salmon farmers. Wheat is the most important ingredient in the fish feed for the salmon giant Mowi.

Erdogan also says the renewed deal will prioritize shipments to African nations, including Somalia, Djibouti and Sudan, in line with Russia’s concern that most of the grain exported since the deals were first struck in July ended up in richer nations.

The Russian Defense Ministry says Russia agreed to continue performing its role in the agreement after receiving written assurances from Kyiv that Ukraine would not use the sea corridor for military actions against Moscow, according to a Russian Defense Ministry statement.


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