Due to the intensification of Russian military aggression against Ukraine on October 10, world wheat prices rose. This trend will continue, because of a bill that designates Russia as a state sponsor of terrorism has been submitted to the US Congress.
The analytical center PUSK, created by the UAC, announced this during a weekly briefing for farmers on October 11.
"On October 10, wheat futures were increased rapidly, it rose the most among agricultural crops, prices may continue to rise in the coming days," noted analyst Oleksiy Tartakovsky.
If Russia is recognized as a state sponsor of terrorism, and the relevant bill is submitted to the US Congress, the Russian Federation will not be able to supply grain to major grain markets because the American sanctions will be imposed.
As a result, wheat prices will contribute to grow in the long run.
"In the current week, price growth is minimal, the rate may slightly exceed $220/t on the terms of the Odesa SRT. However, the next week, prices may reach $227/t or UAH 9,000/t. Under DAP Romania terms - $335/t," the analyst predicts.Tuesday, 11 October 2022