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Writer's pictureWright Team

Why Prices Fell This Morning

Ukraine’s Ambassador to Great Britain told his British counterpart this morning (London is six hours ahead of Central Time) that Ukraine would be willing to end its quest to join NATO if that would eliminate a Russian invasion of his country. That news sent commodity prices lower around the world early this morning.

Russia responded that the purported comment does not change anything as it is not from official channels. Ukraine’s President has no comment, but others in the Ukrainian government said Ukraine is not willing to give-up its 14 year quest to join NATO.

Black Sea grain market analyst, Andrey Sizov, reported an hour ago that the primary Russian political party introduced legislation for Russia to recognize the Russian occupied territories of Ukraine of Donets and Lugansk as independent countries. Certainly not peace offering.

All of this does not change the longer term outlook for corn and beans, but it makes the short term price outlook very unpredictable. I expect there will be plenty of buyers on dips in the futures market.

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