Wheat surged as mounting tensions over Ukraine stoked concern about the outlook for grain shipments from Eastern Europe.
Futures in Chicago climbed as much as 4.4 per cent, while contracts tied to corn and soybeans also rose in Chicago as the US said intelligence indicates Russia may attack Ukraine before the 2022 Beijing Winter Olympics end on February 20. Moscow has said it has no intention of invading.
Ukraine and Russia together are heavyweights in wheat — supplying more than a quarter of the world’s shipments of the grain. They also play a big role in global corn and sunflower oil. A protracted discord in the region could keep prices of such commodities elevated and add to food costs that are already the highest in a decade.
While a direct conflict might initially see a liquidation in positions to take risk off, the “ultimate issue for wheat would be bullish for prices,” said Rich Nelson, chief strategist at US based Allendale.
In wheat options, implied volatility on March contracts jumped from 32 per cent to 48 per cent on Friday, with overall volume up about 60 per cent. Benchmark futures in Chicago for May delivery climbed the most in more than four months, before pulling back to end the day up 3.2 per cent at $8.04 a bushel.
Bloomberg Agriculture Spot Subindex neared an all-time high earlier this week, as the outlook for soybean and corn crops in South America continues to dim. Prices across grains, oilseed and softs markets have all rallied recently as supply shortfalls abound, a signal that food inflation already hitting consumers worldwide probably will continue.
More bullish signs for soybeans emerged Friday with a new South American forecast. Soil moisture in Brazil’s south is likely to keep falling in the next 10 days amid dry conditions and high temperatures, worsening conditions for still-developing crops, said Celso Oliveira, Climatempo meteorologist.
The%20specs
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
MATCH INFO
Bayern Munich 2 Borussia Monchengladbach 1
Bayern: Zirkzee (26'), Goretzka (86')
Gladbach: Pavard (37' og)
Man of the Match: Breel Embolo (Borussia Monchengladbach)
UAE currency: the story behind the money in your pockets
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
A Cat, A Man, and Two Women
Junichiro Tamizaki
Translated by Paul McCarthy
Daunt Books
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