The foundations of the rise lay in the escalation of the Russian-Ukrainian crisis, with the deployment of Russian troops in Lugansk and Donetsk, territories self-proclaimed separatist republics, but whose sovereignty has been claimed by Ukraine since its self-proclamation in 2014.
According to the Rosario Stock Exchange (BCR), “the importance of the Black Sea region in the sunflower oil trade leads to important rises in soybean complex products, with special relevance to soybean oil and vegetable oils in general, since Ukraine and Russia account for about 60% of production and 80% of world trade in sunflower oil”.
In this way, soybean oil rose 3.81% (US$56.88) to US$1,546.53 per ton, while flour advanced 1.29% (US$6.39) to conclude the day at $500.11 a ton.
Wheat also concluded operations with strong gains. A) Yes, the March contract climbed 5.92% (US$17.36) and stood at US$310.21 per tonas a consequence of the growing tension in said conflict that “is leading to redirect purchases of wheat, corn and sunflower oil towards alternative destinations”.
Russia and Ukraine respectively occupy the first and third place in wheat exports, “taking over about a third of the world cereal market,” the BCR noted. This generated expectations in US operators regarding “potential increases in the demand for North American wheat, which underpin prices with special impetus in Chicago.”
Finally, corn gained 3.13% (US$8.07) and stood at US$265.64 per ton, also because of the conflict, considering that Ukraine is the world’s fourth largest exporter of corn. “Potential fears of non-compliance with shipments discourage trade in the Black Sea area and push prices up,” said the Rosario stock market entity.
Source: Ambito
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