Russia's invasion of Ukraine has led to a sharp increase in oil and grain prices
Russia's open aggression against Ukraine has led to a rapid increase in oil and grain prices and a collapse in stock indices.
On the morning of February 24, Russia launched rocket attacks on airfields and military infrastructure throughout Ukraine. Ground troops attacked Ukraine from the OKU of Belarus and the Russian Federation. The beginning of full-scale military operations may escalate into a third World War.
Global stock indexes, especially Russian ones, collapsed in anticipation of the reaction of Western countries to open aggression against Ukraine.
April Brent crude futures on London'S ICE Futures rose 5.1% to.101.3/barrel, while March WTI crude futures on the New York electronic Mercantile Exchange (NYMEX) rose 5% to 9 96.6/barrel.
Rising oil prices and risks of reduced corn supplies from Ukraine and Russia, which are the world's main grain exporters, led to an increase in stock prices:
- March corn futures on the Chicago Stock Exchange-up 5% to 2 282.6 / ton,
- March wheat futures-by 5.7% to 3 340 / ton,
- March soybean futures-by 3% to 6 633 / ton,
- March soybean oil futures-by 4% to 1 1,620/ton.
At the same time prices for Black Sea grain increased significantly less:
- March Black Sea corn futures-by 1.2% to 2 294 / ton,
- March futures for Black Sea wheat – by 2.1% to 3 316/ton.
Everyone is waiting for the reaction of Western countries to the aggression, but it is not known whether it will stop the military escalation. The main lever of influence now should be economic sanctions, namely the cessation of international trade with Russia and a ban on making payments in dollars, which will hit the economic situation of ordinary Russians.
The ruble exchange rate against the dollar at the beginning of trading jumped from 80 to 100 rubles/ руб, but trading was stopped. According to forecasts, the exchange rate may grow to 150-200 rubles/..
