COM - Black Sea grain deal extended for two months Erdogan says

2023-05-17 11:23:42 ET

Wheat futures are falling Wednesday, after Turkish President Tayyip Erdogan said Russia has agreed to extend the deal that allows Ukraine to ship grain through the Black Sea, one day before the pact was set to expire.

In reaction to the news, wheat futures ( W_1:COM ) in Chicago recently traded -2.8% after paring losses, and corn ( C_1:COM ) was -3.6% .

ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( DBA ), ( MOO )

While an extension keeps the deal going for now, Ukraine has accused Russia of purposefully slowing the pace of exports, and the corridor is now nearly empty, with no inbound ships cleared since early May.

The pact initially was intended to run for 120-day periods, but Russia only agreed to a 60-day extension in March; the shorter period creates more uncertainty for traders and shipowners.

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