Reuters: Wheat prices rose sharply after the Russian missile attack on the Odesa port

Wheat prices rose sharply due to the Russian armyʼs missile attack on the Odesa port. The Russian attack raised doubts about the implementation of the agreement on grain export from Ukraine.

Reuters writes about it.

Wheat futures on the Chicago Mercantile Exchange rose almost 4% on Monday, July 25, to $7.86 per bushel [one bushel of wheat equals 27.216 kg]. Before that, on Friday, July 22, prices fell by almost 6%.

"The restoration of Ukrainian exports will require not only safe shipping channels but also safe ports. Even before the ink was dry on the transport deal, the Russians raised doubts about port security. There are doubts again," one of the European traders told reporters.

Meanwhile, in the USA, they are working on plan B for grain exports from Ukraine, if the agreement with Russia fails, the administrator of the United States Agency for International Development (USAID), Samantha Power, said in a comment on the CNN channel.

"Plan B includes road, rail, and river transport, sending barges and adjusting rail systems to better align with European ones and export faster," Power said.

• Since the beginning of the full-scale invasion, Russian troops have been blocking exports from Ukrainian ports, as a result of which products have to be exported by rail and road. Western partners offered to build granaries near the border and negotiate with Russia, but they are not ready to unblock the roads militarily. Meanwhile, Russia continues to steal Ukrainian grain, exporting it to Crimea, Syria and Turkey.
• On July 22, Ukraine and Russia signed an agreement on grain export with Turkey and the UN.
• Deputy Minister of Infrastructure of Ukraine Mustafa Nayem said that this agreement is an opportunity for farmers to export this yearʼs harvest and have funds for preparation for the next sowing. In addition, this is almost a billion dollars of foreign exchange revenue every month, which will go to support the economy and the Armed Forces of Ukraine. Control over the ports "Odesa", "Chornomorsk" and "Pivdennyi" was and remains completely under the control of the Ukrainian side.
• Russian ships will not be able to accompany Ukrainian vessels. Mykhailo Podolyak, adviser to the head of the Presidentʼs Office, clarified that there would be an immediate military response in case of provocations.
• The agreement will be valid for 120 days with the possibility of its extension. According to the agreements, Ukraine does not need to demine the ports — ships will pass through safe routes within the territorial waters of Ukraine.