Weather Concerns Drive Grain Market Rally amid Black Sea Grain Initiative Uncertainty

Agriculture: Weather concerns boost grains

Agriculture: Weather concerns boost grains

Weather concerns in both the US and Europe saw grain markets rally significantly yesterday. CBOT corn and wheat both closed more than 5% up on the day. Dry weather in the US has seen the condition of the corn crop deteriorate, whilst there also appears to be further downside to the upcoming Russian wheat crop.

In addition, Ukraine has voiced its concerns over the Black Sea Grain Initiative and highlighted the risk that the deal may not be extended. The deal is set to expire in mid-July, and as we have seen numerous times over the course of the initiative, Russia has threatened to pull out of the deal.

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Topics

us Russia ukraine wheat europe agriculture grains rally dry weather crop condition weather concerns CBOT corn Russian wheat crop Black Sea Grain Initiative deal extension mid-July market uncertainty

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