EXCHANGE CORNER

Geopolitical Tensions Reverberate in Wheat; La Niña Returns

Jan 31, 2022

Economic Research

Geopolitical Tensions Reverberate in Wheat; La Niña Returns to Ag Markets

By Erik Norland, Senior Economist
CME Group

Geopolitical Tensions Underpin Black Sea Wheat

Prices for Black Sea wheat have fallen less than U.S., Australian wheat since November
Ukraine/Russian wheat exports are three times higher than comparable U.S. wheat
Investors monitoring possibilities of supply disruption amid tensions over Ukraine
Tensions are not much of a factor in global corn, soybean markets

Ag Markets Brace for Return of La Niña

Top soy producers Brazil, Argentina hit by record high summer temperatures
Spot corn, soy prices rose after last two La Niñas, breaking an established trend
Brazil and Argentina have surpassed U.S. in net corn, soybean exports
La Niña is occurring during the S. American summer growing season

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