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Ukraine War not the market mover many perceived

A grain market economist suggests the War in Ukraine has not supported commodity prices like many traders anticipated.

Ed Usset with the University of Minnesota says when the war began two years ago it was considered a very bullish event for the grain markets because of how it would upset supplies and movement out of the Black Sea.

“But the fact is, Russia has had good wheat crops, and they are the largest exporter of wheat in the world. And they have stepped into the breach, if you will, of what was a perceived shortage of wheat, of food grain.”

He tells Brownfield Russia is sending wheat to Africa, Southeast Asia, and the Middle East at low prices.

“And they can do it because they’ve had big crops, and Russia has had good crops for ten years running.”

And Usset says Russia is poised to have another strong wheat crop in 2024.