Wheat Futures Advance with Escalating Ukrainian Turmoil

Wheat futures spiked higher today when it was learned a civilian airliner was shot down in Ukraine near the Russian boarder. The countries of Russia & Ukraine are considerable supplier of world wheat and any disruption from those country’s will affect wheat futures.

Wheat futures have had a topsy-turvy ride this year….wheat prices spiked 15% in the first quarter alone as tensions between Russia & Ukraine escalated creating supply concerns. Then in the second quarter wheat futures tumbled 17% when tensions eased and drought conditions here in the US receded.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current wheat futures situation,Ukraine produces a lot of wheat . When this crisis occurred someone bought 7,700 contracts of Chicago Wheat at the market.” Moreno added,Ukraine is the 6th largest wheat exporter in the world. We need to keep an eye on this situation.”

Wheat futures’ trend remains down despite this temporary spike in wheat prices. I will look for an opportunity to sell short when wheat futures finds resistance.

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