The shaky situation in Ukraine pushes global grain prices higher

Published Mar 21, 2022

Tridge summary

On March 21, 2022, the agricultural market experienced significant volatility, with prices for corn, soybeans, and wheat increasing due to concerns over Ukraine's export capacity and questions about its spring planting capabilities. This surge was influenced by geopolitical risks in the Black Sea Region and weather conditions in the U.S. and Brazil. Meanwhile, China is planning to release 1 million metric tons of its state potash reserves to address domestic supply issues. Additionally, India is exploring potential wheat exports to several countries, including Egypt, Israel, Oman, Nigeria, and South Africa, despite being a minor exporter. South Korea has also purchased 1.7 million bushels of milling wheat from the U.S.

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

Original content

Monday was yet another session that saw significant volatility - this time swinging back into farmers’ favor after a wave of technical buying today. Worries over Ukraine’s export capacity and doubts about the country’s ability to plant crops this spring returned to the forefront, causing double-digit gains for corn, soybeans and wheat. Corn firmed 2% higher, with soybeans up around 1.5%. Wheat contracts were variable, ranging between 2.25% and 5%. The first day of Spring was yesterday, and the season may indeed come in like the proverbial lion - a storm raking through the southern U.S. this week could deliver tornadoes, damaging winds, hail and floods. Further out, NOAA’s 8-to-14-day outlook predicts more seasonally wet weather for most of the Midwest and Plains between March 28 and April 3, with warmer-than-normal conditions prevalent across the Great Plains next week. On Wall St., the Dow started Monday’s session with moderate gains, only to tumble 271 points lower in afternoon ...

Source: Prairie Grain Partners