On the Ukrainian conflict wheat growing in price

On the Ukrainian conflict wheat growing in price

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On the Ukrainian conflict wheat growing in price

Recently, we talked about the fact that Ukraine has three components: grain, sugar and metal. If sugar and metal situation have already seen, it is worth paying attention to the third component.

Global markets are not very concerned about the situation in Ukraine due to the metal and sugar. But quite differently they react to the grain. Ukraine is an important player in the global grain market. As a result of the escalation of the conflict in the east of the state, wheat prices jumped to a two-month records. Nothing rational it is not, because the militias do not control the ports and do not interfere with the grain business directly.

Markets priced in a certain amount of risk associated with the possible interruption of supplies from the Black Sea. The dynamics of the closing price on the stock exchanges indicate serious prospects for further growth of the price, and it is good for Ukraine as it is possible to earn now. At the same time Russian Grain Union has published data that this year Russia will collect a record harvest of grains and legumes.

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