The uncertainty between Russia and Ukraine has local wheat growers curious about possible market impacts. Russia is the largest wheat exporter and Ukraine is the third largest in the world. NDSU Extension Crops Marketing Economist Frayne Olson said it’s very easy to have disruptions to those trade flows. “Russia has a large naval base at the Crimea Peninsula that’s about equal distance to the major export terminals of Ukraine and Russia where they ship grain. There’s only one small canal that connects the Black Sea into the Mediterranean.” Olson said it would be easy for Russia or NATO to stop shipments through that canal. If global wheat prices increase, that does not mean the United States will see a big flood of hard red winter wheat exports. “The countries Russia and Ukraine sell to are price sensitive. U.S. winter wheat tends to be higher priced than competitors.” Olson was part of the Best of the Best in Wheat and Soybean Research in Grand Forks on Thursday.
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