Wheat rose near its highest level in more than 13 years on Monday, while aluminum and nickel also surged. Bullion — a haven in times of international tensions — climbed more than 2%.The U.S. and a sweep of European governments agreed toRussia’s central bank and exclude others from the SWIFT messaging system that’s used for trillions of dollars worth of global transactions.
Russian and Ukraine together account for nearly a quarter of global wheat exports and a fifth of corn sales. Russia is a major supplier for a swathe of commodities including aluminum, nickel, palladium, oil and gas.As the war intensifies, the risk of logistical turmoil is also rising fast across commodities markets, with insurers eitherto offer cover for vessels sailing into the Black Sea, or demanding huge premiums to do so.
Wheat futures in Chicago surged as much as 8.7% to $9.34 3/4 a bushel, while corn climbed 5% and soybeans rose 3.9%.
Spinning this as good news runs against the already dire situation of our poorest. High grain/maize prices = high profits for farmers and industry = greater unaffordability for the poor. And we also already know that greater demand does not = more jobs any longer...