Ukraine
A week ago, Jerry Gulke discussed how global events could affect agriculture. Now we know.
The grain markets posted some of their largest weekly gains ever this week.
From growing tensions between Ukraine and Russia to forecasts for hot and dry weather across the Midwest, grain prices have been on a volatile run. Analysts think the volatility could heat up again next week.
The July Ag Economists’ Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.
It didn’t start with the swing of an ax in the Amazon or by an explosion in Kiev. Both contributed, but the shifts in global grain flows is a multifaceted prism through which the future is continuing to evolve.
The Kremlin said there was no link between the attack and suspending the deal, which lets Ukraine export grain through the Black Sea. Instead, it occurred over a failure to ease rules for food and fertilizer exports.
Last week was full of both bullish and bearish news for the wheat market. Arlan Suderman of Stone X Group says there are still several things that could spark momentum in the wheat market.
The Ukraine Black Sea grain deal has been extended for two more months, one day before Russia could have quit the pact over obstacles to its grain and fertilizer exports.
Kansas typically accounts for 25% of the nation’s winter wheat production, but ongoing drought is weighing on overall crop conditions. Farmers are now facing the possibility of increased abandonment this year.