Adequacy of information moving up in value. This time: wheat exports have allegedly been cut off. What next?

07.08.2018

Traders and brokers monitor information flows and filter news all the time as this is of critical importance for making a “sell” or “buy” decision. The news suppliers – social networks and news agencies – follow this situation and just produce what their consumers demand, i.e. news – as rapid and numerous as possible in order to be the number one on the media scene.

There is actually no time for checking out, analysis, correct interpretation of news and announcements. This determines the significance of reliable analysis for shaping the behavior of a market under the influence. Actually, market analysis is already a fundamental factor now. Fake news and price upsurges bring high profits to lucky players but inflict considerable losses on other market participants. While the former are interested in price upsurges, perhaps everyone, with no exception, is interested in adequate information. 

Ukraine may limit milling wheat exports? – this was the news that stirred up the agricultural community in the evening on Thursday, August 2. Wheat quotations on the Chicago Exchange jumped by 5%, hitting a three-year high.

However, these rumors were not confirmed. The matter only concerns signing a traditional memorandum between the Ministry of Agrarian Policy and traders that specifies maximum export volumes of wheat, including milling one.

After the rumors had been denied by a number of industry organizations (in particular the Ukrainian Grain Association) and analytical companies (in particular UkrAgroConsult), grain prices fell back to their previous values.

 

UkrAgroConsult, your source of reliable information

 

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