The frantic price rally provoked by the Russian invasion of Ukraine continues

Published 2022년 3월 1일

Tridge summary

The article highlights the impact of the Ukraine conflict on commodity markets, with a focus on the significant price fluctuations in oil, grains, metals, and other commodities. The war has led to record high prices for wheat, corn, and vegetable oils, causing concerns about global food inflation. The conflict has disrupted exports from major wheat and grain suppliers, Russia and Ukraine, accounting for about 30% of global wheat exports and 19% of maize supplies. The article also discusses the challenges and opportunities for alternative suppliers, such as France and Romania, and the effects of EU sanctions on Novorossiysk, Russia's largest deep-sea Black Sea port for grain exports. Additionally, the article touches on the strategic decisions of traditional buyers like China and investors' concerns regarding the upcoming harvest in Ukraine.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The war in Ukraine has shaken commodity markets. News agencies do not stop with alarming news coming from both sides of the Atlantic, Reuters warns: - Oil and grain prices are soaring due to Russia's declared nuclear readiness and Western sanctions; - The record high level of aluminum prices caused by concerns about Russian supplies; - Gold is becoming more expensive, palladium prices are rising as the West tightens sanctions; - The world fears global food inflation due to the drastic rise in prices of wheat, corn and vegetable oils. Let's look at the grain markets. Analysts say that in the last few days, the prices of major cereals in Europe and the United States have shown unprecedented volatility. On 25 February, for example, the lower limit of the price fluctuations of the May wheat contract on the Paris Stock Exchange (Euronext) was around EUR 314 / t and the upper EUR341 / t, which is almost EUR 27 in just one day. On the morning of February 25, wheat began trading in Paris ...

Source: Sinor