Wheat markets turned higher Thursday after a Malaysia Airlines flight went down in Ukraine.
According to The New York Times, “A Malaysia Airlines Boeing 777 with 295 people aboard was likely shot down by an antiaircraft missile before it crashed and burned on Thursday in an eastern Ukraine wheat field near the Russian border, in an area roiled by fighting between pro-Russian separatists and Ukrainian forces.”
While the world sat back and took a collective gasp, wheat futures in the United States took off. What was a ho-hum day with a slightly bearish note turned into a buying frenzy.
Northern Ag Network spoke with Henry Kornegay of Jackson Commodities after the markets had closed on Thursday. Very similar to what happened a few months back when Russians moved into Crimea, Kornegay says that the trade looked at Thursday’s devastation as another potential disruption in that market.
Now what? According to Kornegay, “We’re just going to have to sit back and wait for it to get settled out.” Details could be a long time coming as to who and/or what took down that flight. It will also take time to determine what it means for the export business from that region. While Kornegay adds that the market can absorb good or bad news and adjust to it, it hates indecision. That could mean a bumpy ride for the near future.
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© Northern Ag Network 2014
Haylie Shipp
