Wheat prices fell sharply on Friday in key markets in the United States and Europe. The price is now back at the level it was before the Russian invasion of Ukraine.
The price drop followed the agreement that Ukraine and Russia concluded earlier on Friday. With the agreement, they guarantee the export of grain from Ukrainian ports via the Black Sea, despite the war.
In the US, the wheat price on the Chicago stock exchange fell by 5.9 percent. In Europe, the wheat price even fell by 6.4 percent. The world has welcomed the grain agreement between Russia and Ukraine. The two countries together produce about 30 percent of the world’s wheat exports.
During the signing ceremony, UN chief António Guterres spoke of a “beacon on the Black Sea”. And he clarified, “A beacon of hope, possibility and relief in a world that needs it more than ever.”
Guterres called on Russia and Ukraine to actually implement the agreement. Analysts are afraid that Russia in particular will not cooperate. Despite the fall in wheat prices on Friday, they were still skeptical about the agreement’s ability to definitively solve the problems in the global food market.
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