Ukraine Tensions Push Grain Markets Higher

(KNSI) – The tensions in Ukraine have caused wild swings in the U.S. grain markets.

Ukraine is a world leader in the exports of wheat, corn, and sunflowers, and Al Kluis, Managing Director at Kluis Commodity Advisors in Wayzata says that Ukraine’s inability to export has sent waves of uncertainty locally. He says he’s traded agricultural commodities for more than 40 years, and this is the most incredible volatility he’s ever seen.

Farmers in Central Minnesota have been cashing in on the opportunity. Kluis says demand has kept the selling price strong. “Farmers have been very disciplined making a lot of scale-up sales, and the basis has hung in there very well. There’s a lot of feed demand in central Minnesota with all the turkey and other livestock producers. You’ve got ethanol demand, you’ve got West Coast corn demand, so farmers and grain elevator have some really good merchandising opportunities.”

The price of crude oil has also spiked as a result of Russia’s invasion. Monday, Brent oil prices closed above $100 a barrel for the first time since 2014.

The International Energy Agency announced Tuesday that its member countries have agreed to release 60 million barrels of oil from their reserves in an effort to dampen the effect of the Ukrainian invasion.

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