News
Traders closely monitoring Russian/Ukraine situation
An ag consultant says this week’s extreme volatility exemplifies the impacts geopolitical and global issues have on commodities.
Dan Roque with Chicago-based Commodity and Ingredient Hedging tells Brownfield supplies are likely to tighten with Russia’s attack on Ukraine.
“Not only on the grain side of things—but you also have oilseeds as well,” he says. “Vegetable oil is taking off again which is lost in the grand scheme of things but actually Ukraine is the top sunflower oil exporter,” he explains.
Corn, soybeans, wheat, and crude oil surged overnight and are expected to remain in flux with the invasion.
Nearly 30 percent of the world’s wheat comes from the region, with Ukraine expected to harvest a record crop, and both Russia and Ukraine are leading wheat exporters.
Traders are cautiously watching what kind of sanctions will be put on the two nations and their impact on the global supply chain.
Brownfield interviewed Roque during the Michigan Professional Pork Producers Symposium in Lansing Wednesday.
