1. Wheat Futures Rise as Russia Moves Into Ukraine
After the Russian forces invaded Ukraine, soybeans, wheat and corn all rose in overnight trading.
Russian troops moved into two breakaway enclaves overnight in what it calls a “peacekeeping” effort after Moscow formally recognized the areas as independent states.
Officials from the West are worried that this could be a precursor for a larger invasion in Ukraine.
Monday night, the United Nations Security Council harshly rebuked Moscow over the incursion, stating that Russian President Vladimir Putin was testing international laws.
On Monday, the U.S. moved most of its administrative personnel to Poland from Ukraine due to fears that Russia would invade. Officials from Ukraine have advised their citizens to be ready to defend their country.
“There will be losses,” Defense Minister Oleksii Reznikov said today. “We will have to go through pain and overcome fear and despair, but we will definitely win because we are on our land and the truth is behind us.”
The Russian invasion into the territories poses a threat to global trade, including for agricultural products. Russia is the world’s largest exporter of wheat and Ukraine is the third-biggest shipper of the grain, according to data from the U.S. Department of Agriculture.
The USDA predicts that Russia will ship 35 million metric tonnes of grain in the 2021-2022 market year that ends May 31. Ukraine is expected to export 24 millions metric tons.
Wheat for May delivery jumped 18¾¢ to $8.22¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures surged 21½¢ to $8.61½ a bushel.
Corn futures for May delivery rose 8¼¢ to $6.61 a bushel.
Soybean futures for May delivery rose 15½¢ to $16.19 a bushel. Soymeal was up $2.10 to $447.80 a short ton, and soybean oil futures gained 1.52¢ to 69.13¢ a pound.
2. Russian Forces Move into Ukraine, International Sanctions Apply
According to European Union leaders, Russian forces moved into two territories in eastern Ukraine that were seized by separatists.
European Union foreign affairs and security policy chief Josep Borrell said Russian troops have moved into the territories, which Russia formally recognized as independent unions and authorized the incursion of a “peacekeeping” force into Ukraine.
While Russian forces are in the areas, Borrell said it was not a “full-fledged invasion.”
European Union countries have imposed sanctions on Russia, with Germany halting the Nord Stream 2 natural gaz pipeline. The U.S. has also started to impose restrictions.
“Russia’s move to recognize the “independence” of so-called republics controlled by its own proxies is a predictable, shameful act,” Secretary of State Antony Blinken said on social media. “We condemn them in the strongest possible terms and stand with Ukraine, as I told Foreign Minister Dmytro Kuleba tonight.”
According to an unnamed senior U.S. official, U.S. officials expected Moscow to recognize Ukraine’s regions as independent so that it could invade the country.
President Biden signed an executive directive prohibiting American citizens from financing new investment, trade and financing in the regions.
According to an unnamed official, Washington will take further action against those who are operating in the Ukraine.
“We will take further measures (Tuesday) to hold Russia accountable for this clear violation of international law and Ukraine’s sovereignty and territorial integrity, as well as of Russia’s own international commitments,” the official said.
3. Winter Weather in the Northern Corn Belt
According to the National Weather Service (NWS), there have been warnings and advisories for a large portion of the north-central U.S. because of snow and wind.
Blizzard warnings are in effect in northeastern South Dakota (and southeastern North Dakota) until 6 p.m. tonight. Another 2 inches of snow is forecast on top of the already fallen, and winds gusting up 40 mph are possible, according to the NWS in a report this morning.
Winter-storm warnings remain in effect until midnight tonight. Additional 6 to 14 inches of snow is expected in northern Minnesota and Wisconsin.
“Travel could be very difficult,” the agency said. “Patchy blowing snow could significantly reduce visibility.”
Wind gusts up to 35 mph can cause snow blowing and snow drifting, and reduce visibility to less than 0.25 miles.
A winter-weather advisory has been issued for central Iowa until tonight due to mixed precipitation. “A couple inches” of snow are possible near the Minnesota border with ice accumulations of 0.10 inch expected.
Source: Successful Farming