Market Expert Says Ukraine War Means More Demand for U.S. Crops

A market specialist recently suggested that the ongoing war between Russia and Ukraine means the market will be watching U.S. crop production very closely.  Mike North is with “ever.ag”. He says, “The fact that Ukraine might not be planting a crop this spring because they’re at war puts a lot of premium into our market because we’re going to have to displace their lack of supply to the world market.”

North says people around the world still want to eat and they will be looking for a source for products they normally get from Ukraine, and it might last longer than a year. “Whether it’s by them banning exports to the end of the year, or it’s by them not being able to plant a crop, either way, you’ve taken that supply away and not just for a moment but for an entire season or two, depending on what happens.”

According to North, if the Russian aggression in Ukraine lingers on for a few more weeks and interrupts the Ukraine planting season, Ukrainian farmers will not get some or all of their ground planted. Their government is encouraging farmers to plant crops that can feed the Ukrainian population. “And so, rather than being an exporter of things, they’re considering options of planting oats and millet and other products that the world really doesn’t buy.”

Editor’s Take:

It is one of those unfortunate situations that no one hopes would ever happen, but the reality is Ukraine will not be a supplier of grain, especially wheat, to the rest of the world for at least the next couple years. And, it is also a reality that one of the benefactors from their untenable situation will be U.S. wheat producers. Although we would prefer not to gain simply due to their misfortune, it will in fact put more money in the pockets of our wheat growers. Wheat prices are escalating rapidly and will level off only when we know with certainty the outcome of the Russia/Ukraine war.