2023-07-17 07:02:55 ET
Chicago wheat futures ( W_1:COM ) jumped more than 4% Monday on news that Russia has terminated the Black Sea grain initiative .
A Kremlin spokesperson told journalists the deal was terminated but that Russia would rejoin the agreement if its demands were met, according to Russian state news agency TASS.
The announcement also comes after Ukrainian drones damaged a key bridge linking Russia to the Crimean peninsula, which Russia has occupied since 2014.
The Black Sea grain deal has ensured the safe passage of more than 32M tons of crop exports since it was signed in July 2022, helping world food commodity prices ease from the record levels reached after Russia's initial invasion of Ukraine.
The pact allowed the export of commercial food and fertilizer supplies, including ammonia, from three Ukrainian ports in the Black Sea.
The corridor has faced repeated disruption in recent months and is nearly empty , tempering the immediate interruption to world crop flows.
ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ) ( MOO )
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Russia to pull out of Black Sea grain deal, sending wheat prices surging