Together Russia and Ukraine produce about 14% of world’s wheat, making for almost one-third of global wheat exports…
Russia’s 12-day-old war on the nation of Ukraine, long known as Europe’s breadbasket, is expected to push up prices on flour-based products such as bread, pasta, and biscuits.
Since the war began, wheat prices have hit a 14-year high.
Together Russia and Ukraine produce about 14% of the world’s wheat, accounting for almost one-third of global wheat exports.
With Russia’s war in Ukraine, the rise in agricultural commodity prices gained momentum, and the rising prices could worsen global food inflation.
The closure of many Ukrainian ports on the Sea of Azov and the Black Sea further aggravates the problem.
While the price of wheat has reached historical levels, sunflower oil and soybeans face similar risks.
As fertilizer prices continue to rise, recent developments show how dependent the agricultural sector is on Russia and Ukraine, the main supplier countries.
Experts said wheat will soon reach a historical high of $13.17 per bushel, last seen back in 2008.
Rising wheat prices also impact other food prices, such as meat and corn.
Over the last week, the price of corn has jumped around 20%.