Frontrunner - 28th January 2022

The world’s wheat markets have seen significant price volatility this week. Fuelled by news reports of increased tension between Russia and the Ukraine, short covering and speculative buying extended gains on Chicago Board of Trade (CBOT) wheat futures by 6% by the close of Tuesday and took the market to its highest level since the end of November last year.

Subsequent diplomatic efforts gave markets confidence a solution to the tensions between Russia and the west might be found, easing speculation of any incursions into Ukraine. With hopes that trade flows and wheat shipments from Russia and Ukraine would continue uninterrupted, wheat futures markets saw heavy selling and, by close of play on Thursday, all the week’s gains had been lost. 

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