Wheat whipsaws amid conflicting signals on grain deal extension

BLOOMBERG

Wheat fluctuated as Russia and Ukraine gave conflicting signals on whether a key grain-export deal had been extended.
Wheat futures traded in Chicago fell 0.8%, after earlier gaining as much as 0.6%. Traders are watching to see whether the Black Sea Grain Initiative, which allows Ukraine to export crops from three ports, will be renewed when it expires.
A spokesperson for Ukraine’s infrastructure ministry said that there’s no update on its position, after Kyiv pushed back on Russia’s apparent offer to extend the landmark grain-export deal by just 60 days. That followed a Tass report which cited Russia’s Deputy Foreign Minister Alexander Grushko as saying Deputy Foreign Minister Sergey Vershinin had confirmed a 60-day extension.
A 60-day extension would only be half the length of the previous two terms of the initiative, which was brokered by the UN and Turkey last July and extended in November. The agreement has significantly boosted Ukraine’s crop exports and helped to lower global food prices. Ukraine earlier said it wants the deal to be extended for a year.
A UN spokesperson did not immediately confirm whether or not there has been an extension of the deal, while Turkey called on the participants to renew the agreement.
Vessels are still heading to and from Ukraine’s Black Sea ports, data posted by the UN show. Three inbound ships on March 13 cleared inspection to sail to Ukraine under the initiative. Three loaded vessels departed and at least four more have sailed so far on Tuesday, although they will still need to pass inspection in Turkey, according to the lineups. Some wheat importers are bulking up on supply ahead of the grain deal’s expiry.