The grain price is being affected by bad weather
Apprehension of a political instability in Crimea and Ukraine is adversely affecting the price of wheat. The Ukraine’s share amounts to around 6% of the global grain export, BBC news reports.
Futures contracts for delivery of crops in May in the Chicago Commodity Exchange has grew already up to 7 dollars per bushel, while at the end of January the wheat price stood at 5,5 dollars.
Ukraine and Russia’s export makes up altogether approximately 17% out of global supplies. In case of failure to deliver from Ukraine or sanctions imposed on crop export from Russia, the shortage in wheat supply will be felt globally, which will lead to surge in its price. Moreover, the analysts assure that the most perilous factor now is worsening weather conditions. Droughty weather in Ukraine, Russia and US can entail surge in grain prices.
As of today, any information about a negative impact on grain export due to political confrontation in Ukraine has not been confirmed yet. But according to the experts’ opinion, absence of problems with purchase and export of cereals from the region does not exclude likelihood of any other complications in the future.
