Market volatility from Russia’s invasion should stabilize
Volatility in the commodity markets has continued following Russia’s invasion of Ukraine earlier this week, but a market analyst expects prices to stabilize.
“The emotional reaction to the events in Ukraine has peaked.”
Bill Biedermann with AgMarket.Net tells Brownfield soybean and grain futures were unable to hold onto the early gains Thursday and wheat dropped overnight after hitting a nine-year high but those swings should end. “The market is going to need new emotional drivers to take out the highs that were established,” he says. “At this point and time, what could that be?”
He says weather could impact prices but that could be in several weeks. “There’s no reason without another threat towards weather, production supplies for the market to make new highs. It needs to stabilize and go sideways here for awhile. But that again, could be a very large range.”
Wheat futures hit the highest since 2012 yesterday before moving off their highs. Overnight, the prospect of booking profits won out over further expectations for price increases.
Bill Biedermann with AgMarket.Net: