Fri, January 27, 2023

Wheat Surges 6%, Here Is Why

Wheat

On Monday, maize and wheat futures in Chicago increased by more than 2% as worries about world supply were stoked by Russia’s decision to leave a Black Sea export pact.

After peaking at $8.93 earlier in the day, the most active wheat contract on the Chicago Board of Trade (CBOT) was up 5.7% at $8.77-3/4 a bushel at 0816 GMT, marking its highest level since October 14. In March, wheat futures reached a record high of $13.64 a bushel. Soybeans increased by 0.6% to $14.09-1/4 a bushel, while corn increased by 2.6% to $6.98-1/4 a bushel.

According to a trader from Singapore, this is an inflationary action, supporting the prices of wheat and corn. Prices have increased, but whether they go up any higher will depend on how things play out. Moscow withdrew from the Black Sea Treaty on Saturday in response to a massive drone strike against the Ukrainian navy in the Russian-occupied Crimea peninsula.

Is Russia Using Food as a Weapon?

Kyiv says Russia is looking for excuses to withdraw from the pact, while Washington claims food has become a weapon. Following Russia’s departure, tons of wheat scheduled for delivery to Africa and the Middle East are in jeopardy. Ukrainian corn shipments to Europe should also suffer.

According to the U.N., Turkey, and Ukraine, the contract for the shipment of grains is moving forward. Moreover, they set up a transit plan for 16 ships. The U.N. mediates the grains agreement and decides the ship routes. A Joint Coordination Centre inspects the ships (JCC) made up of U.N., Turkish, Russian, and Ukrainian authorities.

Because Russia and Ukraine are two of the biggest producers of wheat, the grain markets have closely watched changes in the eight-month-old invasion by Moscow. As Russia continued its aerial strikes, air raid sirens sounded throughout Ukraine. According to Ukrainian officials, an attack on the energy infrastructure resulted in the loss of water and power in several locations.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its