Some of the selling pressure on wheat this week comes from Russia and Ukraine agreeing to extend the Black Sea grain corridor, said Jack Scoville, an analyst with the Price Futures Group.
“It’s a lot of the reason we’re down a dime,” he said of the price of wheat falling with the announcement of the extension of the corridor deal.
Discussion continues on the length of the deal. Russia is talking about a short-term extension while the other parties want an extension for at least 120 days, Scoville said March 20.
The agreement politically doesn’t hurt Russia’s ability to sell wheat, he said, as Russia continues to sell a big crop at low prices. Big Russian offers and cheaper Russian prices will be a feature for a while in the world market as they are a driving force for the weaker prices. This trend towards weaker prices could continue, Scoville said.
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