Jump to content

Wheat price climbs almost 6% as Black Sea deal fails


MongiIG

Recommended Posts

With Russia pulling out of the so-called Black Sea deal, to allow the export of Ukrainian wheat, traders sense an opportunity to buy the commodity. This has also had a knock-on effect for corn.

 Jeremy Naylor | Writer, London | Publication date: Monday 31 October 2022

Black Sea deal

Moscow has suspended its involvement in the so-called Black Sea deal, which is an agreement to allow the exports of wheat from Ukraine to the rest of the world. It's in response to what Russia called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.

Wheat price

Let's take a look at what's happened for the price of wheat, because this is up on the trading day today. You can see quite clearly that there is this big gap that we've seen here currently with the rise of 5.92%.

Now, this deal sort of fell apart, if you like, at the weekend. And we saw some evidence over the weekend that there was going to be this upward move, not just in wheat, but also in other areas of the market as well, because when you don't get wheat, you go to substitute.

One of the substitutes is corn which is not precisely a good substitute, but it is something else, another foodstuff. And you can see here, clearly this now has risen by a gap as well with the rise of two and three quarter percent. So there is upward movement in food staples as a result of this.

There's no end in sight immediately. So potentially there could be some more upside to go. But we'll have to see how things develop of the number of ships that have been barred from exit. There have been two that have got through, but there is something like around about almost 20 ships, I believe.

My understanding is that there are still to come through at some point, but at the moment at least, it's been barred from doing so because of the agreement that's just fallen apart.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • DeFi holds incredible promise, but it’s not without its obstacles. Smart contract vulnerabilities, scalability concerns, security risks, and a lack of consumer protection all need to be addressed for it to reach its full potential. Take WUSD, for instance. It’s a stablecoin pegged to the US Dollar, designed to offer stability for payments and trading. While that sounds great in theory, it’s important to remember that, like any DeFi project, WUSD comes with its own set of risks that need careful consideration. WUSD aims to connectTradFi with DeFi by establishing a global network for real-time payments. While the idea is promising, there are still significant concerns about security, regulatory challenges, and scalability. Smart contracts can have bugs, and the unregulated nature of DeFi means that sudden legal or regulatory changes could have a big impact on projects like this. Ultimately, the real challenge will be whether WUSD and similar solutions can gain enough trust to be used in everyday transactions, without falling into the same pitfalls that many DeFi projects have faced. Issues around security, scalability, and regulation remain major roadblocks, and there’s still a lot of uncertainty about how these projects will evolve. For now, though, they’re an intriguing alternative, and I’ve decided to pick up some WUSD on Bitget as a way to diversify away from USDT.
    • The crypto community is buzzing with excitement as Bitcoin (BTC) is once again capturing attention with growing expectations for a rally toward the $100,000 mark. Here’s an analysis of why traders are setting their sights on this key psychological milestone and what factors are fueling this optimistic sentiment. -Bitcoin Halving Cycle Anticipation Bitcoin’s next halving event, expected in 2024, reduces the reward miners receive for verifying transactions, thus lowering the supply of new BTC entering circulation. Historically, halvings have preceded major price rallies, and the anticipation of this event has many traders betting on a price surge. -Bullish Technical Indicators Recent technical analysis shows that BTC is forming a “cup and handle” pattern, a classic bullish signal that often precedes major price increases. Key support levels have held up in recent weeks  -What’s Next for Bitcoin? Traders are watching for key indicators that could confirm the path to $100,000, including ETF approvals, stability in the broader market, However, long-term holders are generally optimistic, seeing BTC's potential for continued growth. Where are you holding is it on DEX or CEX ?      
    • Been following the tech space lately and came across something pretty interesting, peaq. It’s a Layer-1 blockchain, but not in the usual sense. They’re focused on creating decentralized infrastructure networks (DePIN) for machines, where over 850,000 connected devices, robots, and machines can interact, make payments, and even verify data without human involvement. It’s automation at a whole new level. I like the fact that peaq is giving machines their own identities with peaq ID, and allowing them to pay each other with peaq pay. This could change industries like logistics, energy, and IoT, where autonomous, secure machine-to-machine transactions are critical. Imagine how much smoother things could run if machines could operate seamlessly together. I’ve also seen some exchanges promoting events related to it recently. Still early, but if peaq can pull this off, it could pave the way for decentralized infrastructure in an increasingly automated world. Anyone else thinking about where this could go?
×
×
  • Create New...
us