The price of Wheat (futures market) has spiked on the back of Putin's all out war and airstrikes on all of Ukraine, mixed with drought conditions re: North America.
The Wheat price has jumped from $7.49 (18th August 2022) to $9.38 (11the October 2022) a three month high on the back of drought issues throughout North America (Chart 1) and the Russian/Ukraine war. Major U.S. grain companies have decreed that it will take another two years for the tight wheat market to become more robust. A hope for the best in light of climate change and deteriorating situation between Russia and Ukraine, with Putin about to declare all out war on the whole of Ukraine, which would mean every city to be attacked with air strikes. Which might end up being a brutal destruction of a country with or without the use of nuclear weapons. This would also mean the Black Sea and Ukraine's Odessa port/s, would come under attack with another Russian blockade. Hence the wheat's recent spike in prices. An even worst situation would be if the British Navy intervenes, as its said it would on the 1st Russian blockade in May 2022.
The orange line beneath the wheat price, is the price of corn which is also beginning to rise via reduced harvests in Europe and America.
Comments
Post a Comment