Black Sea deal and weather forecast pulls wheat prices down


The United States has announced a  Russia-Ukraine Black Sea maritime security deal after talks in Riyadh. 


The aim of the deal is to ensure safe exports of agricultural products through black Sea, and the U.S. has agreed to help Russia restore its access to the international market for agricultural and fertilizer exports. 



Retrieved from: https://www.reuters.com/world/europe/russia-says-proposed-black-sea-initiative-is-new-deal-2025-03-27/


News of the agreement has  led to a drop in the Chicago wheat futures, and the most traded wheat contract hit its lowest point since 5th of march. 



According to bairdmaritime.com, the news is seen as bearish, as it opens doors to safer shipping from the two countries, which as a result will lead to increased exports and supply of the commodities. 


The site also mentions that prices of the wheat futures are affected by improved weather forecasts, in regions that are dependent on good weather, which also have a role in pushing wheat prices down. 






References: 


https://www.aljazeera.com/news/2025/3/26/russia-ukraine-black-sea-deal-what-is-it-and-will-it-work



https://www.bairdmaritime.com/shipping/dry-cargo/bulkers/wheat-futures-drop-on-black-sea-agreements



https://www.reuters.com/world/europe/russia-says-proposed-black-sea-initiative-is-new-deal-2025-03-27/


https://www.theguardian.com/world/2025/mar/26/ukraine-war-briefing-black-sea-deal-will-allow-russia-to-profit-from-grain-markets-lavrov-says

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