Wheat (World) - Short Bias; Cheap Ukrainian wheat everywhere!Sure, it is winter in the northern hemisphere so why even bother with the grains at all? ...
... Because cheap Ukrainian wheat had absolutely flooded European markets, so much so that very soon they will have to start dumping some of it into the ocean! (Right now, they are trying to air out these mountains of grain, so it wouldn't mold, but that will go only so far.)
Normally, this time of the year, 55-60 ships per week get loaded with Ukrainian wheat, headed for Africa and Asia.
As of last week, these numbers are down to 19 ships .
Russia closed the Bosporus to Ukrainian wheat (and oil seed) shipments.
As an alternative solution, Ukraine is shipping most of its harvest to the EU - mostly Poland & Germany - to load it on ships in those ports. - But guess what ...
... shipping it all to Europe AND THEN load it onto ships makes the whole proposition economically non-viable. (Well below producer cost.)
So now, the endless trainloads of grains, continuously pouring into the EU, gets dumped all over EU markets (at 40%-60% discounts!) because long empty local silos are all filled to capacity. There is now zero (0) storage capacity left anywhere in Europe! (... and the endless trainloads just keep on coming.)
... making this trade - not a monster - rather a no-brainer. (Like free beer)
