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Iowa Farmers See Grain Prices Surge On Ukraine News

(Des Moines, IA) -- Farmers and ag industry leaders are watching the events unfold in Ukraine, a country that exports a significant amount out wheat and corn to Europe.

"The markets were already very volatile, it's a crazy time in the grain markets and the supply chain, which was already stressed and uncertain about production in various parts of the world is now trying to deal with the reality that there's a lot of uncertainty about the availability of corn, wheat, and soybeans in the world. It' has just fueled the fires in the markets," says Kirk Leeds, Iowa Soybean Association.

He says the supply chain was already stressed, and now with the invasion into Ukraine has some buyers scrambling to make sure they're able to get the grains they need to make food products and feed a hungry world.

Leeds is predicting continued volatility in the grain markets for a while.

Chad Hart, Iowa State University Extension agrees that volatility will likely continue. Hart says after news of the invasion, prices corn, wheat, and soybeans soared this (Thursday) morning, soybeans then came back down again.

He says global grain supplies are tight, and it may be difficult to get grain stored in Ukraine out of the country during the current military action. Hart says that could put upward pressure on markets. He also says it could also encourage farmers to plant more soybean acres, which could put downward pressure on prices in the long run.

Hart notes that higher grain prices will likely not lead to upward pressure on grain-based consumer goods. He says if there's any impact, it will be on consumer meat prices first. Hart says, however, it appears right now the biggest pressure will be in the energy sector, -pushing up prices at the gas pump.


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