100 Days of war: Russia & Ukraine

100 Days of war: Russia & Ukraine

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Friday marks the 100th day since the start of the war between Russia and Ukraine. Ever since Russian President Vladimir Putin decided to invade Ukraine on Feb. 24th, Wall Street has seen a spike in commodities specifically with regards to oil and wheat.

Oil

At the close of Feb. 23rd, the day before the attack oil prices were sitting at $92.10/bbl and yet to cross over the $100/bbl price point. That all changed on the first day, when oil spiked north of triple digits. Since Moscow’s invasion, prices of oil have soared by 25%, currently hovering near the $116/bbl level. Additionally, at one point oil peaked at $130.50/bbl just a few days after the onslaught.

Oil Companies & ETF price action over the past 100 days: Exxon Mobil (NYSE:XOM) +23.6%, Chevron (NYSE:CVX) +27.6%, Valero Energy Corporation (VLO) +53.3%, Energy Select Sector SPDR ETF (NYSEARCA:XLE) +27.8%, and Vanguard Energy ETF (VDE) +29.2%.

Wheat

Russia and Ukraine together represent nearly a third of the world’s grain exports. As a result, once the two nations began to battle, wheat prices took off, spiking as high as 61% in just the first weeks. Wheat prices still remain elevated, above 20% since Feb.24. At the moment Wheat trades at $1,052 USd/Bu, up from its pre-war level of $882/USd/Bu.

Agriculture ETF price action over the past 100 days: Teucrium Wheat Fund (NYSEARCA:WEAT) +27.5%, Path Bloomberg Grains Subindex Total Return (JJGTF) +21.5%, and ELEMENTS Linked to the MLCX Grains Index – Total Return (GRU) +13.4%.

What was thought to be by some a quick takeover by Russia has turned into a slow grueling war. Ukrainian President Volodymyr Zelensky stated that Russian operations control one-fifth of the country. Far from being over thrown, Ukrainian forces continue to fight which can more than likely continue to fuel higher commodity prices across the board.

On the broader markets, stock futures are lower Friday with another major voice warning of a troubled economy.

Originally Posted on: https://seekingalpha.com/news/3845428-100-days-of-war-russia-ukraine?source=feed_tag_commodities
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