The threat of a full-scale invasion by the Russian Federation and the response to manifestations of Russian aggression from the West is the main driver of rising prices for oil, gas and, as a result, energy crops used in the production of biofuels.

This is reported by analysts of the electronic grain exchange GrainTrade.

March futures for Brent oil reached $90/bbl on Friday and crossed $91/bbl on Monday.

Quotes are rising amid concerns about a possible shortage of supplies amid rising global demand for fuel. The main reason for the deficit is lower-than-expected production in OPEC+ countries.

At the next meeting of OPEC + on February 2, the production quota will supposedly be raised again by 400 thousand barrels, but it is not known when and which countries will increase oil sales in order to stop the rise in oil prices.

March futures for corn on the Chicago Stock Exchange on Friday rose by 1.7% to a record $250/t this season, having added 7.3% of the price over the month.

March futures for Black Sea corn on the Chicago Stock Exchange also rose by $3/t to $288/t on Friday, adding 5% over the month.

In Ukraine, corn prices stabilized in ports at $270-272/t, while hryvnia prices amounted to UAH 8,600-8,750/t against the backdrop of hryvnia devaluation.

March futures for European corn on the Parisian Euronext rose by 2.25 €/t on Friday to 257.25 €/t or 287.2 $/t, adding 5 €/t over the week.

Political tensions between Russia and the West are expected to ease this week amid active negotiations and the start of the Olympics in China. A long weekend in China on the occasion of New Year's celebrations will reduce demand for corn in Ukraine and the US, which could turn prices down.

Recall that atypical price trends will dominate the wheat and corn markets. They also wrote that NIBULON will reduce the area under corn this year.

AgroTimes