Russia will rejoin Black Sea export deal as concerns about water levels in the Mississippi River persist

Financial Times writers Ayla Jean Yackley and Max Seddon reported today that:Grain deliveries from Ukraine will resume on Wednesday around Russia he agreed to rejoin a UN-backed initiative to export them, an end to the stalemate that threatened to erupt in the global food crisis.

“Turkish President Recep Tayyip Erdoğan said Sergei Shoigu, the Russian defense minister, called his Turkish counterpart to say Moscow has returned on board.”

FT writers explained that “Erdoğan, who had had a close relationship with Vladimir Putin since Moscow launched its invasion of Ukraine and helped broker the original grain deal in July, said Putin told him he would like to see” the poorest countries in Africa. “. first benefits.

“The next grain shipments will go to Somalia, Djibouti and Sudan, particularly vulnerable countries without Ukrainian imports of agricultural products,” added the Turkish president.

“Export of grain from Ukraine to the Black Sea transit corridor on Thursday” by Megan Durisin, Volodymyr Verbyany and Daryna Krasnołucka. Bloomberg News (November 1, 2022).

After the announcement of Turkey Chicago Wheat Futures fell 6 percent to $ 8.68 per bushel while corn submerged 1.7 percent to $ 6.86 a bushel, ”the FT article wrote.

Reuters writers Ali Kucukgocmen and Jonathan Landay announced today that “Russia announced on Wednesday that it would resume participation in a deal to free important grain exports from war-torn Ukraine after it was suspended over the weekend, which threatened to worsen hunger around the world.

“The Russian Defense Ministry said it had received written guarantees from Kiev not to use the Black Sea Grain Corridor for military operations against Russia.”

The Reuters article added that “Turkish President Tayyip Erdogan said earlier that Russian Defense Minister Sergei Shoygu told his Turkish counterpart that the July 22 grain deal, through Turkey and the United Nations, would be continue to operate from noon on Wednesday.

“The grain shipments will continue as previously agreed from 12:00,” Erdogan said.

Also today, writers Bloomberg, Aine Quinn and Firat Kozok, announced that:Wheat prices fell after Russia agreed to resume the deal enabling the safe flow of Ukrainian crop exports, the withdrawal of the weekend announcement, which sowed chaos in agricultural markets and resulted in a sharp rise in prices. “

“Chicago wheat futures fell by a staggering 6.3%, following a surge in the first two days of the week. Cereal prices have been volatile over the past few months amid speculation about the fate of the deal, which was due to be renewed in mid-November, ”wrote a Bloomberg article.

And Wall Street Journal journalist Jared Malsin reported today that: “Russia has announced that it will resume participation in an agreement allowing grain exports from Ukraine, ending all-day stalemate this threatened the steady flow of such mail to world markets.

The cereal markets have plunged after Russia’s move. Wheat fell by more than 5% early Wednesday, while corn prices fell by more than 1%.

Meanwhile, Donnelle Eller announced on the front page of today’s Des Moines Register that:

A severe drought in the Midwest and High Plains reduced the Mississippi River to historic lows, grounding barges, trapping grain in terminals in the central United States, nearly tripling shipping costs, and increasing the incomes of Iowa farmers like Scott Ewoldt.

“Ewoldt has transported the record harvest of soybeans to elevators on the Mississippi, the” superhighway “that transports grain from the Midwest to the Gulf of Mexico, from where it is exported around the world. Moving this crop to the river will cost him about $ 12,000 more this year than in previous yearsestimated farmer in Scott County.

– And as it concerns, Ewoldt said that … more worried if this year and next spring the fertilizer will manage to flow into the overgrown river“.

The Des Moines Register (front page – November 2, 2022).

Eller explained that “The catchment area of ​​the Mississippi River it is huge, the fourth largest in the world, hauling from about 40% of the continental United States., says the National Park Service. Much of this is in drought: ABOUT half Midwest and almost 75% High Plains experiences moderate to extreme drought, shows the US Drought Monitor. ABOUT 80% The south, with part of the catchment area flowing into the Mississippi, is also drought.

“All of these areas are experiencing some degree of drought,” said Dennis Todey, director of the US Department of Agriculture’s Midwest Climate Center in Ames. “So little contributes to the Mississippi River.”

Today’s article adds that “big grain companies like Cargill Inc. and CHS Inc. say they are still carrying the grain from farmers in Iowa and the Midwest. But CHS, a large cooperative in the Minneapolis area, said: it takes twice as long for grain transport from St. Louis to New Orleans.

“They overload barges, get stuck in line and intermittent river closures significant slowdownCHS spokesman Patrick Stumpf said in an email.

US Drought Monitor (October 27, 2022).

The river turmoil is happening as national rail unions may decide to go on strike this monthdespite the employment contract announced in September by the Biden administration. So far, two of the 12 rail unions have rejected the offer, concerned about the sick leave policy of the railway companies. “

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