Ukraine Backs Out of Black Sea Grain Deal Talks, Economist Says | Brownfield

Agricultural economist Jim McCormick, in an interview with Brownfield, said a proposed deal to resume grain exports from Ukraine through the Black Sea collapsed last month.

According to McCormick, reports indicate Ukraine walked away from the agreement. The deal would have facilitated the movement of Ukrainian agricultural goods through the Black Sea region.

"If they would have been able to cut a deal, it probably would have made it a little bit easier to get stuff moved," McCormick told Brownfield. He added that Ukraine faces additional challenges in transporting wheat within Europe due to ongoing tensions.

McCormick expressed concern that Russia might target Ukraine's grain infrastructure in retaliation. He pointed out that if Russia feels they cannot conquer Ukraine, they might target the country's capacity to export grain.

McCormick also highlighted the current depressed state of global wheat prices compared to production costs for US farmers. He noted that despite a war raging in a major global grain producer, wheat prices haven't reflected a significant wartime premium.