TRADE & COMMODITIES MARCH 2022
www.drycargomag.com
Volatile grains and oilseeds prices soar on Russian invasion
DCi 4
Maria Cappuccio Russia invaded Ukraine on February 24 and we are seeing the horrific toll on Ukraine’s people, loss of lives, human suffering. Over 1.9m people are said to be displaced inside the country and there is a huge increase in the number of people escaping across the borders to neighbouring host countries who have taken in more than 2.8m refugees, not seen in Europe since World
War II. The invasion has caused substantial volatility in markets across all asset classes, the ongoing conflict and resulting spike in agricultural commodity prices, oil and natural gas, fuelled concerns about rising inflation-the entire global economy will feel the effects of slower growth and faster inflation, potential food security risks, the escalation of hunger and poverty especially
in import-dependent countries in Near East Asia and Africa. Global wheat prices already reflected a tight supply situation but following the invasion and the potential loss of wheat supplies, both countries being significant exporters of wheat, global wheat prices soared to record highs. The 2022 northern hemisphere winter wheat crop, including
