Ukraine Crisis Sparks Frenzy in Global Agriculture Trade
A dramatic rally in crop prices this week sparked by the Russia-Ukraine crisis is signaling more pain ahead for grocery shoppers already feeling the strain of soaring food costs, reports Bloomberg.
Prices of staples from wheat to edible oils have rocketed to fresh highs on worries about supply disruptions in the Black Sea region. Ukraine is the world’s second-biggest grains shipper and Russia often tops the ranking for wheat exports. Together they also account for about 80% of sunflower oil trade.
Any disruptions to flows would quickly ripple through to buyers in Asia, Africa, and the Middle East, boosting costs for bread and meat and potentially increasing demand for supplies from the Americas or Europe. Ukraine is a major seller of corn to China, and Russia sends wheat all around the world.
With wheat prices hitting the highest since 2008, soybeans touching a nine-year high, and palm and soybean oil near unprecedented levels, consumers are set to feel the pinch as those cost increases make their way to supermarket shelves. Expect more expensive pasta, chocolate, margarine, shampoo — you name it.
Get The Newsletter Today!
