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Russian / Ukrainian tensions broaden focus on AG market

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Russian / Ukrainian tensions broaden focus on AG market

Ag economists say ongoing tensions between Russia and Ukraine will continue to be the focus of the ag market.

David Widmar of Ag Economic Insights states that Ukraine is a large ag exporter and therefore raises questions about overall production. “How much can conflicts, wars and changes in the regime affect future investment, both long-term and short-term,” he asks. “Ultimately, if there is a battle that could reduce the supply there and increase the risk of agricultural production and the trading system.”

He said Brownfield’s world traders are also very closely monitoring the proposed economic sanctions against Russia. “It will be very difficult for other countries to buy goods or exchange things like they are with Russia,” he says. “And it could be related to agriculture, but specifically when thinking about the European continent, they are monitoring this for oil and energy.”

Widmar states that current volatility should serve as a reminder for producers to implement their business’s risk management strategies. “Let’s not go too deep into the weeds trying to guess what will happen,” he says. “Focusing on winning base hits and using all the information available that day to make the right decisions, the next 18 months could have different consequences for the global, US and ag economies. Let’s realize that there is. “

Ukraine is the world’s third largest exporter of wheat and the fourth largest exporter of corn. The timing of this potential turmoil will come as the world continues to recover from the historic tight supply in 2021.

Audio: David Widmar, Ag Economic Insights



Russian / Ukrainian tensions broaden focus on AG market

https://brownfieldagnews.com/news/russia-ukraine-tensions-growing-focus-of-ag-markets/ Russian / Ukrainian tensions broaden focus on AG market

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