During the 12 days of the war in Ukraine wheat prices increased by 55%

The crazy idea of the Putin regime attacking a free and democratic Ukraine, shelling cities, and killing civilians in order to "liberate themselves from the fascists" increases the impact on global wheat prices, as shipments from the two main exporting countries are halted.

In Ukraine, ports are blocked by military operations, and buyers refuse Russian grain in order to avoid financial sanctions, difficulties with payments after the Swift shutdown, and due to the unwillingness of shipowners to put ships under load due to a sharp increase in the cost of insurance and the risk of falling under fire, as happened with a Panamanian-flagged ship near Odessa.

March wheat futures in Chicago and Paris are updating records, and on Friday rose another 4.5% and 3.1% (and since February 24 by 55% and 41%), respectively, crossing the all-time high of 2008.

At the same time, may contracts are becoming more expensive more slowly, as the market hopes to increase supplies from the EU, Australia, India, Argentina and Kazakhstan amid rising prices.

Australia exports 25.5 million tons of wheat this season, compared to 23.8 million tons in my 2020/21 and 9.1 million tons in my 2019/20. India will supply a record 7 million tons of wheat to the world market, and rolling reserves will amount to 26.1 million tons, compared with 27.8 million tons in my 2020/21.

Analysts of APK-Inform believe that Kazakhstan will increase wheat exports from 5.8 million tons in 2020/21 MG to 6 million tons in 2021/22 mg, of which 4 million tons have already been shipped.

May futures rose yesterday:

• by 6.6% or 2 27.56 / ton to 4 444.2 / ton for soft winter SRW wheat in Chicago,
• by 5.6% or 2 23.61 / ton to 4 446.3 / ton for hard winter HRW wheat in Kansas City,
• by 2.2% or 1 10.56/ton to 4 421.5 / ton for hrs durum wheat in Minneapolis,
• March Black Sea wheat futures in Chicago increased by 4 4.5/ton to Чикаго 404/ton.

March European wheat futures on Paris ' Euronext rose €12/ton to €393.75/ton (+41% in two weeks), but the dollar price rose to 4 428.36 /ton amid a sharp drop in the euro exchange rate to €1,088/€.