{"id":408670,"date":"2022-02-22T23:33:00","date_gmt":"2022-02-22T20:33:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/"},"modified":"2022-02-22T23:33:00","modified_gmt":"2022-02-22T20:33:00","slug":"commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/","title":{"rendered":"#Commodities Corner: Russia\u2019s move into Ukraine is boosting commodity prices \u2014 here\u2019s what\u2019s at stake"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af66d5b1c34e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af66d5b1c34e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Metals_grain_and_energy_prices_on_the_rise\" >Metals, grain and energy prices on the rise<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Oil\" >Oil<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Natural_gas\" >Natural gas<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Palladium_and_platinum\" >Palladium and platinum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Nickel_and_aluminum\" >Nickel and aluminum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Wheat_and_corn\" >Wheat and corn<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-russias-move-into-ukraine-is-boosting-commodity-prices-heres-whats-at-stake\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Commodities Corner: Russia\u2019s move into Ukraine is boosting commodity prices \u2014 here\u2019s what\u2019s at stake<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Metals_grain_and_energy_prices_on_the_rise\"><\/span>\n  Metals, grain and energy prices on the rise<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000625429\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000625429\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Russia\u2019s move into Ukraine has the potential to affect not just oil and natural gas but several commodities, including palladium, nickel and wheat \u2014 all of which were moving higher Tuesday.<\/p>\n<p> \u201cEscalating tensions between Russia and Ukraine are putting a strong bid in for commodities,\u201d said Chris Blasi, president of precious-metals dealer Neptune Global.<\/p>\n<div class=\"paywall\">\n       \u201cDepending on the specifics of any proposed sanctions, should they be implemented, they could prove counterproductive,\u201d he told MarketWatch. \u201cIf not thoughtfully constructed, the pain felt by Russia may be dwarfed by the inflationary pain the rest of the world could experience from rising commodity prices.\u201d<\/p>\n<p>Russian President Vladimir Putin said on Monday that he recognized the independence of pro-Moscow separatist factions in Luhansk and Donetsk, Ukraine and ordered troops into the breakaway regions.<\/p>\n<p>The conflict between Russia and Ukraine has contributed to a rally for a number of a commodities over the past few weeks as it has the potential to have a wide impact on the commodities market. <\/p>\n<p>Russia is a major producer of oil, natural gas, palladium, nickel, and wheat, while Ukraine is a major corn and wheat exporter and an important transit route for Russian natural-gas flows to Europe. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Oil\"><\/span>Oil<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Both U.S. and global benchmark oil prices have recently touched their highest levels since about September 2014.<\/p>\n<p>\u201cGlobal inventories have already been tightening before the latest developments in Ukraine,\u201d said Marshall Steeves, energy markets analyst at IHS Markit. \u201cSo $100 oil had been priced in to the extent that tighter inventories warrant it.\u201d <\/p>\n<p>\u201cFurther tensions and a ratcheting up in troops could support further gains. It remains to be seen how far this situation deteriorates,\u201d he told MarketWatch.<\/p>\n<p>In Tuesday dealings, March West Texas Inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te crude<br \/>\n        CLH22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209723967\/delayed\" class=\"positive\">+1.32%<\/bg-quote><\/p>\n<p>        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"positive\">+1.32%<\/bg-quote><br \/>\n       traded at $93 a barrel, up $1.93, or 2.1%, ahead of the contract\u2019s expiration at the end of the New York Mercantile Exchange session. Prices the U.S. benchmark had settled at $95.46 on Feb. 14, the highest since September 2014. April Brent crude<br \/>\n        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"negative\">-0.30%<\/bg-quote><\/p>\n<p>        BRNJ22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705233\/delayed\" class=\"negative\">-0.30%<\/bg-quote><br \/>\n       tacked on $1.69, or 1.8%, to $97.08 a barrel on ICE Futures Europe, poised for the highest front-month contract finish since September 2014.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<h6><span class=\"ez-toc-section\" id=\"Natural_gas\"><\/span>Natural gas<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Germany on Tuesday took steps to halt the process of certifying the Nord Stream 2 natural gas pipeline from Russia, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/apnews.com\/article\/russia-ukraine-business-germany-europe-berlin-79e3dafb0d231f6a033613b7dab78cdf\" class=\"icon none\">according to the Associated Press.<\/a><\/p>\n<p>Germany halted the Nord Stream 2 pipeline, \u201cdespite the fact that it had never even entered service,\u201d said Steeves. \u201cBut uncertainty after Russian President Putin recognized two breakaway Ukrainian republics persists and energy markets are the beneficiary.\u201d<\/p>\n<p>For natural gas, the U.S. weather forecast is \u201cnominally supportive with temperatures expected to trend below normal over the coming week, though conditions are not likely to be frigid,\u201d he said.<\/p>\n<p>March natural gas<br \/>\n        NGH22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210190071\/delayed\" class=\"positive\">+1.47%<\/bg-quote><br \/>\n       was trading 11.9 cents, or 2.7%, higher at $4.55 per million British thermal units, looking to post its first gain since Wednesday.<\/p>\n<p>With Germany effectively freezing the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval process for Nord Stream 2, S&amp;P Global Platts Analytics is removing the pipeline from its forecast, as it was previously expected to start up in October 2022 of this year, said James Huckstepp, manager EMEA Gas Analytics at S&amp;P Global Platts. <\/p>\n<p>This has reduced assumption for Russian gas flows to Europe and led to an increase in Platts Analytics global gas and liquefied natural-gas price forecasts over the next two-years, \u201cwith reverberations across the wider commodity complex, including power, coal, and oil,\u201d Huckstepp said.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Palladium_and_platinum\"><\/span>Palladium and platinum<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Russia \u201cdominates\u201d the market in the mining of platinum and palladium, said Neptune Global\u2019s Blasi, adding that \u201cthere is no spare capacity to meet industrial demand for them.\u00a0\u201c <\/p>\n<p>Platinum and palladium prices have bee rallying since the start of 2022 and their steep price rise \u201cwould be expected to continue should the Ukraine situation deteriorate further, and the West intercedes aggressively,\u201d he said.<\/p>\n<p>In Tuesday dealings, the most-active April platinum contract<br \/>\n        PLJ22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/224241866\/delayed\" class=\"positive\">+0.36%<\/bg-quote><br \/>\n       tacked on $10.10, or 0.9%, to $1,086.90 an ounce, trading more than 12% higher year to date. <\/p>\n<p>March palladium<br \/>\n        PAH22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/223562561\/delayed\" class=\"positive\">+0.95%<\/bg-quote><br \/>\n       traded at $2,375.50 an ounce, up $37.60, or 1.6%, in Tuesday trading, up over 24% for the year so far.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Nickel_and_aluminum\"><\/span>Nickel and aluminum<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Prices for nickel have seen some gains so far, while aluminum has barely budged, but both have the potential to see a bigger influence from further developments in the Russia-Ukraine crisis.<\/p>\n<p>Nickel prices on the London Metal Exchange traded Monday at their highest levels in more than a decade and has climbed by 18% since the start of the year, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.barrons.com\/amp\/news\/nickel-prices-soar-on-russia-tension-tight-supply-01645447507?mod=article_inline\" class=\"icon none\">according to Barron\u2019s<\/a>. <\/p>\n<p>On Monday, nickel\u2019s cash bid price was at $24,865 per metric ton, up 1.5% from Friday\u2019s settlement. Aluminum\u2019s bid price was at $2,685, unchanged from Friday, according to Dow Jones Market Data.<\/p>\n<p>\u201cCertainly the main beneficiaries in the base metals space are [aluminum] and\u00a0nickel, with Russia such a big producer of those metals,\u201d said Al Munro, LME desk at Marex, in a Tuesday note. <\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.statista.com\/statistics\/260812\/leading-nickel-miners-2011\/\" class=\"icon none\">Statista ranked<\/a> Russia\u2019s Norilsk Nickel as the world\u2019s top nickel producing company in 2020 based on production volume. United Co. Rusal International, meanwhile, is known as being among the world\u2019s largest aluminum producers. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Wheat_and_corn\"><\/span>Wheat and corn<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Sal Gilbertie, president and chief investment officer at Teucrium Trading, put Russia and Ukraine\u2019s impact into perspective on Tuesday. <\/p>\n<p>\u201cRussia and Ukraine combined would create the world\u2019s top exporter of wheat, accounting for almost one of every three bushels of global wheat exports,\u201d he told MarketWatch.  <\/p>\n<p>\u201cThe two countries combined also account for almost one out of every five bushels of global corn exports, he said, and \u201cUkraine is the world\u2019s third largest exporter of corn outright.\u201d<\/p>\n<p>\u201cFears of export disruptions are what are supporting prices right now, but there has been no actual disruption of exports or of offers to export wheat and corn from the Black Sea as of yet, which is what is keeping prices from moving dramatically higher from here,\u201d said Gilbertie.<\/p>\n<p>The most-active May wheat contract<br \/>\n        WK22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/213232502\/delayed\" class=\"positive\">+5.53%<\/bg-quote><br \/>\n       rose 35 3\/4 cents, or 4.5%, to $8.39 3\/4 a bushel in Chicago and May corn<br \/>\n        CK22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215552763\/delayed\" class=\"positive\">+3.26%<\/bg-quote><br \/>\n       rose 15 cents, or 2.3%, to $6.67 3\/4 a bushel. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/myra-p-saefong\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/MktwSaefong\",\"text\":\"@MktwSaefong\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:mpicache@marketwatch.com\",\"text\":\"mpicache@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-798B-15D79A6897CB%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Commodities Corner: Russia\u2019s move into Ukraine is boosting commodity prices \u2014 here\u2019s what\u2019s at stake&#8221; Metals, grain and energy prices on the rise Russia\u2019s move into Ukraine has the potential to affect not just oil and natural gas but several commodities, including palladium, nickel and wheat \u2014 all of which were moving higher Tuesday. \u201cEscalating&#8230;<\/p>\n","protected":false},"author":1,"featured_media":408671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-490517\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-408670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/408670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=408670"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/408670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/408671"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=408670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=408670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=408670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}