Black Sea Region Conflict Continues to Draw Concern
“This thing just doesn't appear like it's going to go away for a while, you know, as seems Ukraine can gain a foothold and start to inflict some damage on Russian facilities, maybe you do start to slow down the limit of or the amount of grain that is coming out of that Black Sea region. And it does impact US values. You know, we could have be premature for wheat futures to sell off it you know, and it could be that could be something that develops as you move forward.”
The conflict is not expected to resolve anytime soon and may persist for another two decades. Irey is convinced that this situation could significantly disrupt global grain distribution and it could force more business to the US down the road.
“I'm not predicting that that's going to happen but it's something that we've erased all the premium out of the markets really the last six months since mid-summer since things have kind of fallen into a pattern there. That might be the one thing out there that's a little positive and of course, we're just going to have to keep an eye on weather moving forward as well.”
Brian Ireeywith Crossroads Co-Op.