The markets of, for example, food commodities and energy have reacted strongly to Russia's invasion of Ukraine on Thursday 24 February. Many prices and quotations have risen sharply after Russia invaded Ukraine from three sides. In this live blog we closely follow the developments in the markets this day. {BLOG CLOSED}
Follow the current prices of grains, corn, soy, sugar, oil and other commodities on the Quote page of Boerenbusiness. Nl or for Price page of Foodbusiness.nl.
- 18.21 Bunge closes offices and two oil seed press facilities in Ukraine
The global grain and agricultural commodity trading company Bunge has announced that it is closing its offices in Ukraine. In addition, the activities of two oilseed press plants in Nikolaev and Dnipro are temporarily suspended after the Russian military invasion.
- 17.30 pm Effect of the invasion of Russia on the foreign exchange market
Even before Russian tanks rolled into Ukraine, the exchange rates of the Russian ruble and Ukrainian hryvnia were already under heavy pressure. In the currency world, the surprise is not with these fallers, but with the coins that are usually the hiding place in tense times. Joost Derks of IbanFirst gives his analysis.
- 16.53:XNUMX PM The potato futures market is not moving along with the grain market
While the grain quotations were on the rise today, the potato futures market is actually in a downturn. The current rate for the April contract has even dropped below €20 and is now at €19,90 per 100 kilos. Here's the analysis for subscribers of Boerenbusiness.
- 16.26:XNUMX p.m. China lifts all export restrictions on Russian wheat
China has announced that it will lift all export restrictions on Russian wheat, the South China Morning Post reported. The agreement further strengthens ties between Moscow and Beijing, according to Chinese authorities. In addition, the agreement provides a lifeline for Russia in the face of heavy sanctions from the west that are looming over Russia.
-15.41 hours Egypt cancels grain tender
The General Authority for Supply Commodities (GASC) Egypt's state-owned grain trading company has today withdrawn an international open tender for wheat due to undersupply. Only one registration has been made by a French provider. The rules state that there must be at least two offers. Iraq announced this afternoon that it had sufficient strategic wheat stocks. The country is not concerned, a spokesman for the Ministry of Commerce said to Reuters.
- 14.10 pm Also financial markets on fire due to war
Now that the European Union has blocked banking transactions with Russia, payments to the Ukraine and Russia are almost impossible. The effect on the financial markets is therefore far-reaching, says Laurens Maartens, currency expert at StoneX. Many trades take flight to safe havens such as the US dollar, the Swiss franc and, for example, also good. The euro is certainly not. By way of illustration, the EU/US share price fell this morning in a 4-hour window, the fastest since the beginning of this year.
- 13.21:XNUMX Ukraine closes ports
Ukraine's military has halted operations in the country's ports on the Black Sea, Reuters reported. Concerns about the availability of grains and oilseeds are therefore increasing. Due to the news, the wheat quotation on the Matif is further on the rise at €7 compared to an hour ago, reaching €336 per tonne.
-12.00 ForFarmers also fears impact
ForFarmers also fears the consequences of the current developments in Ukraine. The company expects the unrest in Eastern Europe to lead to persistently high energy and raw material prices, especially in the first half of the year. These could 'significantly' influence the results of the animal feed giant and push compound feed prices even higher. The company announced this this morning at the presentation of the annual figures over 2021.
- 11.48 Food security in the European Union at risk
Warns Member of Parliament Jaco Geurts (CDA) in a tweet.
- 11.45 Heavy Western sanctions in the making
The European Union and the United States abhor the Russian invasion. Efforts are currently underway to set up a large sanctions package. Prime Minister Mark Rutte hints at 'maximum sanctions'. It will probably become more clear later today how the West wants to hit Russia. Excluding Russia from international payment traffic is being considered. There is also talk of a ban on exports of high technology to Russian companies, such as computer chips.
- 11.35 am Sugar price moves with oil
Now that the price for Brent crude has passed the $100 a barrel mark, uncertainty has once again arisen in the sugar market about the percentage of sugar cane going to the ethanol industry. As a result, sugar on the Liffe futures market is quickly becoming more expensive. read there here more about.
- 11.10 am Shipping on the Sea of Azov stopped, Black Sea still open
Russia has suspended commercial shipping in the Sea of Azov until further notice. The ports on the Black Sea will remain open, Russian sources and five grain traders active in the region have told Reuters. The Ukrainian ambassador has asked Turkey to close the Bosphorus and Dardanelles (access to the Black Sea) to Russian ships. Ankara has not yet responded to this request.
- 11.00:XNUMX Wheat on the Matif shoots up
The wheat quotation on the European Matif has skyrocketed immediately after the market opened. The March contract closed yesterday at €287 in the first minutes after the opening of the market, that has risen to €343,25 per tonne, an increase of 19,6%. The May contract has increased from €294 to €338,50 per tonne. The contracts for the new harvest are also on the rise. The September contract is up 14,06% to €318,50 per tonne. This means that the Matif reacts much more firmly than the American CBoT.
- 10.45 am What if Putin steals the European granary?
In the third week of January spent we already map out what the effects could be if Russia were to invade Ukraine† "Grain exports only come to a halt when the Russians advance towards the Heavy Sea ports," said arable farmer Kees Huizinga, who has a company in Ukraine. The big question now is whether Russian President Putin also intends to do this.
- 10.24 am Palm oil in big steps up
With prices for Brent crude oil rising at a rapid pace, tropical oils are becoming more attractive for biodiesel production. Palm oil is an example of that. However, the stock is limited and the production is also not easy. As a result, the quote moves upwards in gigantic steps.
- 9.45 am Stock markets are taking heavy losses
Where the commodities are on the rise, the stock markets should show a significant spring. The US Nasdaq fell 2,57% to 130.037,49 points yesterday. In Japan, the Nikkei lost 1,81% to close at 25.970,82 points. The Dutch AEX has fallen to 9 points since the opening at 709,94 am, a loss of 2,46% compared to the closing price a day earlier.
- 9.35 am Gas price rises by almost 30%
Brent crude is at $103,20 a barrel at the time of writing, up 6,5% compared to its closing price. The biggest riser is natural gas. The TTF stands at €114 per MWh at the time of recording, an increase of no less than 28,24%.
- 9.30 am Wheat increases to . on CBoT
The March contract for wheat on the CBoT stands at $9,26 per bushel (about €302 per tonne). That's an increase of 5,71% from the previous day's closing price. Corn is also up 5,12% on the CBoT to $7,19 per bushel (about $252 per tonne). Energy prices are rising even faster than agricultural commodities.
- 8.00 Consequences of the invasion of Ukraine
Yesterday we wrote what effect an invasion of Russia can have on the country's economy. It would have few direct consequences for the energy supply in Europe. Russia is a major energy supplier, Ukraine is not at all. However, a raid could have major consequences for the global food market and food prices.
- 06.42 AM Grain prices FOB Ukraine fall at the start of the war
The FOB price per tonne for maize from Ukrainian ports has fallen to $289, for wheat the FOB price has fallen to $309.
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