Wild swings in commodities from wheat to crude oil are here to stay, with global supply chains getting reassessed in the wake of Russia’s invasion of Ukraine, according to Gregory Broussard, global head of financial trading for Cargill Inc.’s risk management unit. An economic ostracization of Russia is likely to persist even if the war ends, prompting reconsideration of how critical supplies like grain, fertilizer and fuel are sourced and produced, Broussard told Bloomberg. Countries will likely start hoarding commodities as a caution. “We will exit this war from the supply side tighter than we entered it,” he said. “When people start throwing sanctions around, they don’t just dissipate overnight. It has implications for routing of raw materials.” Bottom line, according to Broussard: “Everyone is going to look at how they source raw materials, if they can, in fact, produce those raw materials themselves such as not to have to deal with a player like Russia.”
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