The crisis in the Ukraine was expected to cause commodities to lower in value and traders to seek out other markets to invest in. When Russia invaded the Crimea region, it raised a lot of turmoil in regards to the Ukraine on commodities across the world since these are International markets. The main concern has been on maintaining the supply of commodities such as oil, wheat and gold.
Tension between Russia and the Ukraine
When Russia invaded the Crimea region, a lot of tension between the two regions became a major concern for binary options traders. It was expected that the markets would crash and many investors would lose a lot of money. This is due to the Ukraine being one of the biggest exporters of grains in the world. Grains require fertilizer to grow properly. Russia, in conjunction with Belarus and Canada, produce potash, which is required to make the fertilizer.
Minimal Impact to Commodities
Although the Ukraine has been facing the probability of limited natural gas and fertilizer, this has not had a big impact on commodities markets. What Russia did not realize at the time is that the Ukraine has a rather large deposit of natural gas available, so this has not been a concern to the country.
The markets have remained rather stable despite the conflict.
The United States stepped in to take initiative to put sanctions in place to protect the sovereignty of the Ukraine. This has saved the commodities market for the time being, given that the pot is not predicted to be stirred in regards to natural gas delivery from Russia for several years.
A bit of Advice for Traders
It is important to watch the markets for the specific commodities mentioned above when their root is in the Ukraine or Russia for at least the next year. The conflict has not caused major issues as of yet but things could escalate between the two countries at any time. Another bit of advice is to work with an experienced broker. The broker can provide insight as to the changes in specific markets given the Ukraine crisis to provide sound advice to help protect your investment or help you move your investment to a more stable market.