Sunday, June 1, 2025

Latest

Wheat Prices Down To Pre Russia-Ukraine War Levels But Still Volatile Due To Unrest

Wheat and corn prices have dramatically dropped around 30-40% from its highest levels this year, hitting even below the prices before the onset of the Russia-Ukraine war.

But recent developments in the unrest within the region still prove to be affecting the stability of the crop prices.

Wheat futures in Chicago Board of Trade soared around 4.6% on Monday after Russia launched a missile strike on the Ukrainian port of Odesa. This offsets the nearly 6% drop in prices days prior following the brokered deal between the two warring countries to reopen three Ukrainian Black Sea ports (Odesa, Chornomorsk, and Pivdennyi) for grain exports.

Wheat Front Month Futures
Source: Financial Times

“A restart of Ukrainian exports will not only need a safe shipping channel, but also safe ports. The Russians have created doubt about the safety of ports hardly before the ink was dry on the shipping agreement. Doubt is there again,” a European trader said.

The deal inked among Russia, Ukraine, the United Nations, and Turkey momentarily eased the tension of a potential food shortage crisis since Ukraine’s seaports have been closed when the war started. The agreement is valid for 120 days with target monthly exports of 5 million metric tonnes–aiming to ensure a freer flow of the food commodities among the world’s largest wheat-exporting nations.

Chart: Ukraine Crisis Likely to Push Up Wheat Prices | Statista

“The Russians have created doubt about the safety of ports hardly before the ink was dry on the shipping agreement,” another European trader added.

The Kremlin said, however, that the missile strike on the Odesa port wouldn’t affect the deal’s objective to resume grain exports. Kyiv clarfied as well that the missile attack did not hit the grain storage at the said port.

While the deal has been signed, the trade volume isn’t expected to be back to its normal levels immediately as concerns about security still loom over wheat exporters and shippers, especially exacerbated by the recent missile strike on the port.

“The willingness of ship owners to come with their ships to our ports will be the crucial factor to recover export volumes from Ukraine,” said Roman Slaston, director general of the Ukrainian Agribusiness Club. “[Farmers] have some cautious optimism about this deal, but they also understand that any time it might stop again.”


Information for this briefing was found via Reuters and sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Chemical Giant BASF Warns of Catastrophic Economic Collapse if Russian Gas Exports are Halted

Chemical company BASF SE warned bureaucrats that cutting natural gas shipments into Europe would have...

Friday, April 1, 2022, 02:24:00 PM

Joe Biden Removes Russia’s Trade Status, Bans Imports of Vodka, Seafood, Diamonds

The Biden administration plans to significantly downgrade Russia’s trade status and impose additional import restrictions,...

Saturday, March 12, 2022, 03:17:00 PM

More Market Turmoil: Moscow Vows to Slash Crude Output in Retaliation to Western Sanctions

Russia announced that it will voluntarily cut crude production by 500,000 barrels per day starting...

Friday, February 10, 2023, 02:14:00 PM

White House Targets Russia With Even More Sanctions

The US government has imposed sanctions on Russia-backed Wagner Group, a private military company spearheaded...

Wednesday, February 1, 2023, 06:18:00 AM

Around 1 Million Reportedly Left Russia After Mobilization

Nearly 1 million individuals have left Russia since President Vladimir Putin’s partial military mobilization began,...

Wednesday, October 5, 2022, 11:40:00 AM