Wheat futures are on a two-month-long tear, and are now back to $US0.69/bu, a level not seen since last fall.
This is a 25% increase since the beginning of February.
The reason? Ukraine.
We’ve mentioned this before, but Ukraine and Russia both comprise an enormous chunk of global wheat exports.
This is arguably the market that’s been most directly impacted by the turmoil in that region.
So as long as it it remains a hotspot, expect volatility to continue.
Below is a chart from Morgan Stanley showing Ukraine’s presence in the global grain markets.