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Wheat costs tumbled Friday, retreating to ranges final seen previous to the Russian invasion of Ukraine following a landmark settlement to unblock Ukraine’s Black Sea grain exports.
In Chicago, the value of wheat for supply in September dropped 5.9 % to $7.59 per bushel, which is equal to about 27 kilograms and the bottom shut since Russia invaded its neighbor on February 24.
On Euronext, wheat costs for supply in September fell 6.4 % to $325.75 per ton.
Friday’s settlement between Kyiv and Moscow — via United Nations and Turkish mediation — establishes protected corridors alongside which Ukrainian ships can come out and in of three designated Black Sea ports in and round Odessa.
Russia and Ukraine collectively produce about 30 % of the world’s wheat exports.
As much as 25 million tons of wheat and different grain have been blocked in Ukrainian ports by Russian warships and landmines Kyiv has laid to avert a feared amphibious assault.
Regardless of Friday’s retreat in wheat costs, analysts expressed skepticism in regards to the accord’s capacity to sidestep the realities of the grinding Russia-Ukraine battle amid doubts over Moscow’s willingness to implement the deal.
“I’m nonetheless skeptical and I don’t assume I’m alone in that in questioning that it’ll truly transfer a lot grain,” mentioned Michael Zuzolo, president of World Commodity Analytics & Consulting.
However Zuzolo mentioned wheat costs might not have a lot additional to fall, on condition that drought situations are hitting output in another components of Europe.
© Agence France-Presse
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