The first Ukrainian exports have reached the global market
Wheat and corn prices dropped on Monday on news that the first grain ships from Ukraine reached their destinations and the expectations that restrictions on Russian agricultural exports will be eased.
Around 11:00 GMT, the most actively traded wheat futures on CBOT fell 1.4% to $7.64 per bushel. Corn traded down 1.1% at $6.03 a bushel, and soybeans fell 0.09% to $14.07. Wheat has so far nearly halved in price since this year's high of $14.25 in March.
Prices have been steadily declining ever since the Moscow-Kiev deal on grain exports, brokered by Turkey and the UN, was signed last month. Russia and Ukraine are considered the breadbaskets of the world, accounting for nearly a third of the global grain supply.
The deal set out a framework for resuming Ukrainian grain exports from Black Sea ports, which had been blocked for months due to the Russia-Ukraine conflict. In addition, Moscow and the UN signed a memorandum stipulating UN involvement in lifting restrictions on the export of Russian grain and fertilizers to the world markets. According to officials, the UN will broker the removal of obstacles created by US and EU sanctions on transactions, insurance, and logistics related to Russian agricultural exports.
READ MORE: Ukraine deal will help Russian exports - UN
A total of 10 ships carrying agricultural products have departed Ukrainian Black Sea ports as of Monday. The first ship, Polarnet, already arrived at the port of Derince near Istanbul earlier the same day. The vessel, laden with 12,000 tons of corn, was the first to leave Ukraine, on August 5.
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