Watch wheat, corn, soy price volatility, rising Black Sea tensions
Chicago wheat, soybeans, and corn lost ground and bounced back as a Russian warship’s firing of warning shots at a cargo ship in the Black Sea region heightened concerns over world supplies.
IGTV financial analyst @AngelineOng takes a look at which direction sentiment is blowing for these agricultural commodities.
(Video Transcript)
We're seeing lots of volatility in Chicago Wheat and also soybeans and corn. Giving you the charts in just a moment. But the reason for this volatility is after a Russian warship fired warning shots at a cargo ship in the Black Sea region. And all this is feeding into concerns the world supplies.
Chicago Wheat
Let's have a look at the chart. Now, this is Chicago wheat there. As I mentioned earlier, a lot of the volatility has come down slightly, but we are still seeing that Chicago Board of Trade, the financial instrument, they're adding some 0.45%.
Corn
That's 0.45% now. Checking in on corn for you as well. This is a picture there for core similar to wheat. We have seen some of that volatility come off.
Soybeans
Now, how about soybeans? Here we are, soybeans on the platform. Same picture there. However, we're still seeing a gain of more than 1%. The Russian warship, which fired the warning shots, there hasn't been any indication yet as to what its intentions were.
But we do know that this was the first time that Russia has fired on merchant shipping beyond Ukraine since exiting a landmark U.N. brokered Green Deal last month.
Commodity Futures Trading Commission
So where is the salad dressing? How do we read and filter this information? Well, I can tell you that the Commodity Futures Trading Commission has weekly commitments of a trader's report.
Also show that noncommercial traders, a category that includes hedge funds, have increased their net short positions in sea wheat and cut their net long position in soybeans.
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