The escalating conflict in the Black Sea region is driving up wheat prices. The ongoing war has added risk premiums that are affecting global grain markets. Arlan Suderman is the Chief Commodities Economist at StoneX.
He talked about current market trends during the latest Channel Final Bell. Suderman said weather delays and concerns this growing season are good for volunteer wheat growth. This is influencing the market.
Black Sea conflict impacts markets
On Wednesday, grain and livestock trades ended higher. The growing risk premium in wheat due to the Black Sea crisis is a key factor.
Movements in corn and soybean markets are also important. They are watching developments in biofuel programs closely. In the livestock sector, higher cash prices supported cattle futures.
This added to the bullish feeling in the market. For more insights on these developments, listen to the latest updates from industry experts.