The Russian-Ukrainian conflict and the wheat market
Wheat
Ukraine
Russia
Published Jan 25, 2022
Tridge summary
The Black Sea wheat market is currently in the spotlight due to tensions on the Russian-Ukrainian border. However, many market participants have not yet noticed any major changes in trading behavior, and the media coverage of the conflict's impact on the market itself is highly contradictory. Russia and Ukraine are among the major players in the global grain market, with combined wheat exports accounting for 23%.
Original content
global sum (206.9 million tons) according to the forecasts of the US Department of Agriculture for the economic year 2021-22. Ukrainian corn exports will account for 17 percent. global export. - Meanwhile, the price of wheat in Chicago increased by 7.4 percent. in just two days. The same tensions in Russia and the West remain the main driver, Andrey Sizov, head of research firm SovEcon, wrote on Twitter on January 19. The tensions helped to weaken the ruble and the hryvnia in the currency markets, with both currencies weakening against the dollar by more than 3% and 4%, respectively. within a month until January 20. However, the impact of the conflict on Black Sea grain prices in the week of January 16 was not significant. - Nothing has changed. When someone wants to hide their buying strategy, they will say it's because of politicians talking about a potential war, one broker said. As evidence, the broker cited the result of a recent tender from Turkey, which is usually the ...
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