USDA Grain Transportation Report (3/23): Black Sea Grain Initiative Extended

According to today's USDA Grain Transportation Report, the Black Sea Grain Initiative—which helped free up grain exports from Ukraine’s southern Black Sea ports—was renewed on March 18, after a previous 120-day extension last November.

Russia agreed to an additional 60-day extension, but Turkey, Ukraine, and the United Nations support another 120-day extension.

A shorter renewal period could reduce the amount of grain Ukraine can export and strain the system, as companies consider the possibility of their shipments getting stuck.

Because Ukraine is a major exporter of grain, a shorter, rather than longer, extension of the deal may escalate price volatility in agricultural and transportation markets.