Global grain prices rise due to geopolitical tensions

Published Apr 23, 2024

Tridge summary

The start of the week has seen a significant surge in international cereal market prices, primarily due to escalating geopolitical tensions, including conflicts in the Middle East and US aid to Ukraine, alongside a rise in oil prices. This has led to notable increases in wheat and corn futures on the Euronext in Paris and the Chicago Stock Exchange, with wheat prices in the US climbing by up to 17.50%. The market's uncertainty and instability are largely attributed to these geopolitical events and the potential for higher freight rates due to the spike in oil prices. Despite a general trend of declining cereal prices since January 2024, the current geopolitical situation has induced significant market fluctuations.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The international cereal markets have started the week with price increases, influenced by "geopolitical tension" due to the escalation in the Middle East, the granting of US aid to Ukraine or the rise in oil, according to what commercial sources have informed Efeagro. The prices of wheat and corn futures contracts have risen this Monday up to 7% and 4.5%, respectively, on the European stock market operator Euronext in Paris, while on the Chicago Stock Exchange (USA ) prices have risen up to 17.50% in the case of wheat."Geopolitical tension fully entered the markets last week; the escalation of war in the Middle East together with the US Senate's granting of a 95 billion package " Despite the latent downward trend, the uncertainty about events generates instability and important fluctuations. In addition, they have pointed out, the price of oil has skyrocketed and there is a danger of an increase in freight rates. These have been the prices and weekly changes in cereals in Spanish ...
Source: Agrodiario
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