Grain prices set to rise amid Russia-Ukraine unrest

Agricultural commodity speculators have bet big on grain prices rising, due to the mounting unrest between Ukraine and Russia over Crimea.

Russia and Ukraine control about 17% of the world’s wheat trade. And Ukraine’s maize export this season was forecast to amount to 16% of world trade.

Not since Russian drought sent grain prices soaring, in July 2010, have speculators been as bullish on agricultural commodities. Part of their reasoning is that if Ukraine is cut off from vital Black Sea ports, this could damage its grains trade further.