This week, US wheat futures markets rallied to briefly touch their highest level since late February this year in what has been a notably volatile period of trade. On Monday, aggressive fund short covering took prices to their daily trading limit of 60 cents up - the equivalent of a 9% price gain. The primary trigger for the gains was the Russian military attacks on Ukrainian grain loading terminals on the River Danube. This river has proven an effective export route for Ukraine wheat and other grains since the Russian invasion in February last year. However, coupled with the attacks on the Black Sea port of Odessa, it seems that Russia is intent on preventing any Ukraine access to world markets. Wheat prices subsequently eased through the week when the EU said it would fund Ukrainian grain transit costs through EU member states to help maintain Ukraine exports, and Russia said it would provide free grain for six African nations to ensure they are not left short.
During current intense volatility, markets can move significantly - sometimes in a matter of minutes and outside regular hours. Our MyFarm platform is free to Frontier customers and offers 24-7 access to market information and live grain prices, as well as the option to sell grain at a time that's more convenient. Find out more: www.frontierag.co.uk/myfarminfo
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