Russia reassures Egypt on wheat exports after Odessa attack
The Russian missile attack on Ukraine’s port of Odessa came just a day after Turkey brokered a deal on safe passage of wheat exports from the war-torn country.
Wheat prices are up again, reversing the drop in response to the Turkish-brokered agreement between Russia and Ukraine on grain exports.
The price of wheat futures on the Chicago Board of Trade rose more than 3% today, going as high as $7.90 a bushel. The price had dropped significantly to $7.56 a bushel on Friday, according to market data. Chicago wheat prices are considered a benchmark for the global market.
Why it matters: On Friday, Russia and Ukraine reached an agreement allowing safe passage for Ukrainian ships to export wheat internationally. The deal was brokered by Turkey, which will accordingly host a coordination center in Istanbul and monitor the loading of the wheat. The agreement also allows for inspections of said ships, alleviating Russia’s concerns of weapons smuggling.
A day after the landmark agreement was announced, Russia launched a missile attack on Ukraine’s port in Odessa. There was grain in the port at the time, and the location is crucial to Ukraine’s exports. Russia said the attack hit Ukrainian military infrastructure.
