Economics
Wheat price hit 2008 highs as Russia-Ukraine war disrupts supply
Wheat price has risen to a 2008 high; trading above $10 per bushel. The rallying recorded in the past month has intensified as Russia’s attack on Ukraine…

Wheat price has risen to a 2008 high; trading above $10 per bushel. The rallying recorded in the past month has intensified as Russia’s attack on Ukraine impacts supplies. The situation is rising concerns over the surge in food prices, food insecurity, and a rise in inflation.

Russia-Ukraine crisis
Russia and Ukraine account for over a quarter of the global wheat exports. As such, the ongoing crisis has the capacity to alter the delicate supply-demand balance. Notably, the war and subsequent sanctions from the West have shaken the grain markets.
Importers are hesitant about conducting business in the region and paying the surging costs of renting and insuring a vessel to obtain cargo from the war-torn area. In fact, companies such as Archer-Daniels-Midland Co. and Bunge Ltd. have closed facilities in the area.
The supply concerns come at a time when supplies were already tight. Labour shortages and unfavourable weather conditions were largely behind the dwindling output. At the current state, importers are rushing to other nations for wheat. Based on the recent rally, the world may have to deal with a surge in high food prices, food insecurity, and overall inflationary pressures.
Wheat price technical outlook
Prior to the rallying that escalated in the past week, wheat price has been trading below $9.00 per bushel since late 2012. Since Friday last week, it has soared by over 20%.
Earlier on Wednesday, it hit its highest level since March 2008 by surpassing the psychologically crucial level of $10 to $10.59. At that level, it was in the overbought territory with an RSI of 81 The wheat futures in Chicago have since eased to $10.27 as at the time of writing.
On a four-hour chart, it is trading above the 25 and 50-day exponential moving averages. With an RSI of 72 it is at the periphery of the overbought zone.
In the short term, I expect wheat price to record a further decline from the multi-year high attained earlier on Wednesday even as it remains on an uptrend. From that perspective, it may trade within a range of Wednesday’s high of $10.59 and the crucial support level of $10.00. Below the range’s lower border, it may find support at around $9.84.

The post Wheat price hit 2008 highs as Russia-Ukraine war disrupts supply appeared first on Invezz.

Haisla Chief frustrated waiting on regulatory decision for Cedar LNG
“Cedar is not only important from a Haisla perspective, [but from] a global perspective” The Haisla Nation is growing anxious for a regulatory decision…
Von Greyerz: As West, Debt, & Stocks Implode; East, Gold, & Oil Explode
Von Greyerz: As West, Debt, & Stocks Implode; East, Gold, & Oil Explode
Authored by Egon von Greyerz via GoldSwitzerland.com,
“The…
Brazil’s New President Doesn’t Want An Independent Central Bank
Brazil’s new left-leaning president Luiz Inácio Lula da Silva (Lula) doesn’t appear to be phased by the country’s surging inflation, and
The post…
-
Economics16 hours ago
Here’s What Happens To Society When The System Fails
-
Economics24 hours ago
Ottawa To Allow Bank Of Canada To Keep Earnings And Recoup Self-Inflicted Losses
-
Financing News21 hours ago
Carlyle Appoints Corporate Secretary, Issues Stock Options, and Announces Investor Relations Agreement
-
Financing News14 hours ago
Rover Metals Announces Second Closing of Its $0.08 Unit Financing
-
Financing News14 hours ago
Decklar and Millenium Complete Delivery of 10,000 Barrels of Crude Oil
-
Energy & Critical Metals22 hours ago
5 Investors Betting Big on Lucid (LCID) Stock in 2023
-
Financing News19 hours ago
VIZSLA SILVER APPOINTS CHARLES FUNK TO ADVISOR AND ANNOUNCES SENIOR VICE PRESIDENT PROMOTION
-
Precious Metals24 hours ago
Maximize Your Returns: The Ultimate Guide to Asset Allocation in Investment Management