Ukraine
Even with Russia removed from the global fertilizer market, it still doesn’t create worst-case scenario. StoneX Group says China could make the situation worse, as China and Russia account for 40% of global phosphate.
On Wednesday, Nutrien said it plans to increase potash output by nearly 1 million tonnes this year to about 15 million tonnes.
The company said: “More than two weeks have passed since Russia’s invasion of Ukraine. From the outset, we have utterly condemned this brutal aggression against a sovereign country.”
Volatility is here to stay in the grain markets — but so could higher prices.
UPDATE: WASHINGTON (AP) - Biden: US ban on Russian oil a ‘powerful blow’ to ‘Putin’s war,’ warns Americans ‘defending freedom is going to cost.’
We could be headed for a volatile year – or more – in both ag commodities and energy. Here are just a few reasons for strong prices.
Oil prices soared to their highest since 2008 due to delays of Iranian nuclear talks and the potential return of Iranian crude to global markets, which are already suffering from Russian supply disruptions.
Russia’s trade and industry ministry has recommended the country’s fertilizer producers temporarily halt exports, the ministry said Friday, in a sign that sanctions imposed could have a global impact.
UPDATE: 03/02 4:23 pm-EST-There are reports a missile struck a vessel flying under the flag of Bangladesh in Ukraine.
Congress returns Monday, but to a very different situation due to Russia’s invasion of Ukraine, which is expected to be one of the key issues President Biden talks about during his State of the Union address.
Chicago wheat futures rose sharply on Monday after hitting 13-1/2 year highs on Friday, lifted by concern that Russia’s invasion of Ukraine and Western sanctions will continue to disrupt Black Sea region grain exports.
USDA’s 2022 supply and demand forecast came out just hours after Russia declared war on Ukraine. And as the crisis continues, USDA Chief Economist acknowledges the situation is impacting world trade and crop prices.
Despite signs Russian President Vladimir Putin may be ready to talk with representatives from Ukraine, Cargill confirmed a ship it chartered was hit in the Black Sea on Thursday. The vessel was empty at the time.
The Russia-Ukraine crisis sent wheat prices skyrocketing 50 cents higher, with corn up 30 cents at one point Thursday. Crude oil also soared above $100 per barrel, hitting the highest level since 2014.
AgriTalk’s Davis Michaelson hosted Vince Malanga, president of LaSalle Economics, on Tuesday, Jan. 25, to dive into the current events and potential market impacts.
Mounting conflict in the breadbasket of Europe is driving volatility in wheat markets as Russia and Ukraine account for 29% of global wheat exports.