Russia Ukraine and Impact on Agriculture (Listen)
I am sure most farmers are wondering how the geo-political events between Russia and Ukraine will affect agriculture? We have been hearing for quite some time Russia was going to invade the Ukraine, I guess it finally, depending on your definition of an invasion occurred today. There were around 150,000 Ukraine troops on the boarder and 150,000 Russian troops. This morning some Russia troops moved in to the Ukraine on a 'peace keeping mission." Russia backed separatists have been in the Eastern Ukraine for quite some time.
I asked Agriculture and Dairy Economist Bill Brooks how these events may impact agriculture and farmers in the United States? Bill said there is some very fertile and productive soil in the Eastern Ukraine. He said this area produces a lot of wheat and corn so any concerns about production could be a shock producing much higher prices. Than as events tame down the "market" will have to evaluate just what the impact will be.
Typically world and 'black swan events" take the grain markets sharply lower. Grain prices dropped sharply when the COVID-19 pandemic hit for example. I guess that is why it feels a little strange to see these events push the grain markets higher. On the other side the U.S. stock market is down quite hard for the second trading day in a row. Click on the link and listen to Agriculture and Dairy Economist Bill Brooks discuss the world events in Eastern Europe.
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