Iowa State ag economist says market impact of Ukraine War is lessening

An extension ag economist says the impact of the war in Ukraine on grain markets has lessened.

Chad Hart with Iowa State University tells Brownfield at the onset of the war, a lot of risk premium was added to the market.

“But now that the war has sort of settled in and we, I don’t want to say ‘gotten used to the war,’ but we at least figured out what the initial impacts of the war have been, the markets have taken that risk back off the table.”

In fact, Hart believes all the risk premium from the start of the war has been given back.

“And now we’re actually starting to erode that risk premium that was built in even before the war started.”

It’s been reported that recent talks about exporting grain out of Ukraine have been productive, and more meetings are scheduled this week.

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