Extraordinary geopolitical events bring extraordinary prices. Summit Commodities market analyst Tim Marsh says it’s hard to know how long gyrations in the wheat market will last. “When the market decides something’s been determined in Russia and Ukraine, the market will likely go down every bit as fast or faster than it went up. If you wait until the highs are in, you miss out.” Marsh says traders are in the mindset that this geopolitical market rally is similar to a drought rally. “With shipments stopping from the Russia and Ukraine’s ports, the markets assume we’ve lost supply, like a drought rally. In this situation, I think the market will remain firm until there’s some kind of a winner determined.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.