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.