Ukranian parts /food

VW to halt production at two German plants for lack of parts made in Ukraine

https://www.wionews.com/world/vw-to-halt-production-at-two-g…

Seems some of their wire harnesses were made in Ukraine - without them, production lines have shut down.


Ukraine exports 1/3rd of all the exports of wheat in the world. Ports are shut down. 80% of all sunflower oil.

If this continues, will be big ripple effect and naturally food prices will escalate quickly fueling more inflation.

"Car Parts, Chips, Sunflower Oil: War in Ukraine Threatens New Shortages "

https://www.wsj.com/articles/war-ukraine-supply-chain-russia…

t

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Ukraine exports 1/3rd of all the exports of wheat in the world.

Would that be Ukraine + Russia?

Top 20 Largest Wheat Exporters in the World
https://beef2live.com/story-top-20-largest-wheat-exporters-w…


Russia    24%
Canada    12%
US        12%
France    10%
Ukraine    9%

DB2

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Comes to mind that spring is approaching. If someone had some foresight, they mind suspend the US fuel ethanol mandate, and the corn farmers switch to wheat.

Steve

Will the disruptions to the wheat trade last long enough to put more income into farmers’ pockets? If so, then a position in Deere (which has gone nowhere over the last year) might be worth considering. Any thoughts?

DB2

If so, then a position in Deere

Doubt it, unless there is a lot of idle farm land around. Combines can harvest wheat as readily as corn. If there is a swing to wheat production, I suspect it would be crop substitution, rather than tilling additional land.

Steve…old phart, remembers when the Russians were buying US wheat.

Comes to mind that spring is approaching. If someone had some foresight, they might suspend the US fuel ethanol mandate, and the corn farmers switch to wheat.

fwiw, I just fired off an e-mail to one of my Senators about that idea.

Of course, the “JCs” that own the ethanol plants would not like it.

Spring wheat needs to be planted early, like March. Corn gets planted later, when the ground is warmer.

Steve

If so, then a position in Deere

Doubt it, unless there is a lot of idle farm land around. Combines can harvest wheat as readily as corn. If there is a swing to wheat production, I suspect it would be crop substitution, rather than tilling additional land.

Rather than additional land I was thinking more about higher prices leading to higher incomes for farmers leading to more big ticket purchases, a speeding up of the replacement cycle.

DB2

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If this continues, will be big ripple effect and naturally food prices will escalate quickly fueling more inflation.

"Car Parts, Chips, Sunflower Oil: War in Ukraine Threatens New Shortages "

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People who know their history of wars already knew all this would happen.

Jaak

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Top 20 Largest Wheat Exporters in the World

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That is not the only grain that is important.
What about barley, corn, oats and rye?

People who know their history of wars already knew all this would happen.

Jaak


100% true

The end game is either this time around or a future time with Putin's death. Each time we do this dance the use of nuclear weapons will gain in attraction to Putin.

The leaders of the western alliance fully get it.

One thing we are waiting on now as the western oil companies exit Russia is XOM exiting Russia. They are lagging as if it is just all about XOM. I will not knowingly buy product from XOM.
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One thing we are waiting on now as the western oil companies exit Russia is XOM exiting Russia. They are lagging as if it is just all about XOM. I will not knowingly buy product from XOM.

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Well the lady who said US had no dog in the Ukraine /Russia fight just sold her XOM investments. Now we need to have the other XOM investors in the US send the following message to XOM:

“Exit Russia or we will Exit you”

Jaak

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That is not the only grain that is important. What about barley, corn, oats and rye?

https://foreignpolicy.com/2022/01/22/russia-ukraine-war-grai….
Ukraine is a top exporter of corn, barley, and rye, but it’s the country’s wheat that has the biggest impact on food security around the world. In 2020, Ukraine exported roughly 18 million metric tons of wheat out of a total harvest of 24 million metric tons, making it the world’s fifth-largest exporter.

DB2

Ukraine is a top exporter of corn, barley, and rye, but it’s the country’s wheat that has the biggest impact on food security around the world.

Asian buyers grapple for wheat supply amid Russia-Ukraine conflict
www.spglobal.com/commodity-insights/en/market-insights/lates…
Global wheat prices have sky-rocketed since Russia invaded Ukraine, disrupting supply from the world’s largest wheat exporting region while boosting Australia’s profile as markets look to shift trade flows…

Australian suppliers were bracing for a surge in export demand as buyers look to replace the loss of Black Sea volumes in the near to medium term. However, a significant increase in export potential is not expected in the short term as logistics and supply chain from Australia were already under stress from a record-breaking harvest…

CFR Northeast Asian corn price index spiked by $46/mt since Feb. 23 to $399/mt…

DB2

Global wheat prices have sky-rocketed since Russia invaded Ukraine…

Some ETFs:
WEAT up 27% YTD
SOYB up 21%
CORN up 19%

DB2

Comes to mind that spring is approaching. If someone had some foresight, they mind suspend the US fuel ethanol mandate, and the corn farmers switch to wheat.

Ethanol should be suspended … forever. It’s what we call a boondoggle.

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Comes to mind that spring is approaching. If someone had some foresight, they mind suspend the US fuel ethanol mandate, and the corn farmers switch to wheat.

Ethanol should be suspended … forever. It’s what we call a boondoggle.


The old lead v ethanol debate. Both add power. Without power you waste gasoline.

There will be engineers that swear both add power. There will be some engineers ands plenty of hackers who say no it does not.

https://www.eesi.org/papers/view/fact-sheet-a-brief-history-…

lead v ethanol discussion well written up.