Grab A Bottle Of Golden Grain Liquor... The Russians Are Coming.. (Wheat)

Well...the Russians are not coming as far as i know but they are making waves. As you may or may not know they are experiencing a massive drought which has decimated their crops, specifically wheat. The result Russia baning the export of wheat and related products.


Overnight CBOT wheat futures were limit up, corn followed in sympathy. The volatility makes for great commodity trading but the bigger picture is something a bit darker than the golden wheat fields of Russia. Specifically the farmers and exporters will be squashed... 

“As of today, Russia has no grain market,” Kirill Podolsky, chief executive officer of the Russian grain trader Valars Group, told Bloomberg News. “This will be a catastrophe for farmers and exporters alike.”

 Global food prices have been on the rise as of late, commodities are moving in lock step with equities as a result of the ridiculous amount of dollars floating around. As commodities inflate will countries of the world turn to an alternative currencies to help stem rising prices? 


Possibly, Russia has not banned the export of oil yet, the middle east i'm sure are still nervous and the Chinese are holding the ultimate time bomb, our treasuries over 45%. What happens when governments around the world start collapsing and as a result those governments starts stockpiling commodities which does include food. Russia is basically doing this on a micro scale, they want to keep the food inside the country to support cattle and other related industries. US farmers are still operating under massive subsidies, so in reality US farmers cannot even operate without the US government. Not good. 


The bottle of golden grain now comes into play, if the governments of the world collapse you will use the farmland you bought to grow wheat to distill into grain alcohol. Supply and demand. 

Posted in: Russia,Wheat