It appears that initial hopes of being able to export grain from Ukraine to avoid a global food crisis may prove illusory. Today, the price opened with about a 3% gap due to the market's fear of not being able to ship stored wheat and corn stocks out of Ukraine. Zelensky indicated that about 22-25 million tons of grain is currently stalled in Ukraine. This is primarily related to the inability to use the ports. According to the president, 75 million tonnes of grain could be ready for export by autumn. Of course it is also worth mentioning other factors that have been positive for wheat prices recently.
The price of WHEAT has increased by 3% to start with, but at the peak it was even 5% higher. The price remains at important support at the 50.0 retracement level, but below the uptrend line. Wheat is in a powerful divergence with oil, although it is worth noting that the correlation has not been very high in the past. There is a much higher correlation with oil for such agricultural commodities as corn and sugar. Source: xStation5
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