World prices of grains, oils and metals rise after Russian nuclear alert

World commodity prices rose on Monday with strong gains in oil, grains, edible oils and metals, after Russia put its nuclear deterrent force on high alert and Western countries imposed new sanctions on Moscow following its invasion. to Ukraine.

The Petroleum Brent rose about 4% to above $100 a barrel, palladium soared 4% and Chicago wheat gained about 5% as buyers tried to figure out how to unwind supplies from Russia if sanctions disrupt trade.

Aluminum reached an all-time high of US$3,525 a ton in the London Metal Exchangewhile Malaysian palm oil gained almost 6%, as the effects of Russia’s possible separation from world commodity markets were felt.

“The short-term price range for commodities has become extreme, given concerns of further military escalation, energy sanctions or the possibility of a ceasefire.”, Goldman said in a note to clients on Sunday.

The ruble plunged almost 30% to a record low after the West imposed new sanctions on Russiaincluding the exclusion of some banks from the SWIFT global payment system.

Putin upped the ante on Sunday, ordering that “deterrent forces” Russia – which wields nuclear weapons – were on high alert, citing statements by NATO leaders and the range of economic sanctions imposed on Russia by the West. Russia rates its actions at Ukraine from “special operation”.

Brent crude rose above $100 a barrel as the nuclear alert and bank payment restrictions raised fears that oil shipments Petroleum of the world’s second largest producer could be interrupted. Russia represents about 10% of the world’s supply of Petroleum.

In agricultural markets, Chicago wheat posted its biggest one-day gain in a decade on concerns about supplies of Russia, the world’s leading exporter of the ingredient for bread making. Corn gained 4%, while soybeans rose 2.6%.

Russia and Ukraine they account for about 29% of world wheat exports, 19% of world maize supply, and 80% of world sunflower oil exports.

Metals markets also rose, with palladium rising as sanctions imposed on Russia raised concerns about the supply of the metal used in auto catalysts, of which Russia accounts for about 40% of global production.

Fear of supply disruptions also caused aluminum prices in the London Metal Exchange reached their all-time high and nickel rose. Russia produces about 6% of the world’s aluminum and accounts for about 7% of the world’s supply of nickel from mines.

The aluminum of the London Metal Exchange hit an all-time high of $3,525 a tonne and nickel rose 1% to $24,615 a tonne, after rising 3% in the session.

With information from Reuters