New York (dpa)
Wheat prices rose on Friday to their highest level since 2008, amid escalating fears of a global supply shortage.
And Bloomberg Agency confirmed in a report today that the Russian war on Ukraine has prevented Kyiv from delivering more than 25% of the crop’s exports.
Bloomberg indicated that wheat prices are on track to record a record high of 40%, the highest level since the start of the Russian invasion of Ukraine, and the United States and Europe imposing comprehensive sanctions on Moscow.
The war closed Ukraine’s main export ports, disrupting logistics and transportation. Ongoing clashes between Russian and Ukrainian forces also threaten the cultivation of crops in the coming months.
Wheat trade with Russia has also largely come to a standstill, as buyers find it difficult to get around complex Western sanctions against Moscow and their refusal to pay high costs for insurance and shipping.
Russia and Ukraine are also major suppliers of corn, barley and sunflower oil. Corn prices rose to their highest level since 2012, while soybean and palm oil prices hit record highs.
Bloomberg noted that China, the world’s largest importer of corn, soybeans and wheat, is heading to secure its basic supplies through global markets, which is pushing prices up.
Wheat futures prices jumped to their maximum in the Chicago Stock Exchange today, Friday, as the price of the ardeb rose from 6.6% to 12.09%.
Expectations indicate that wheat prices will rise further, increasing pressures on inflation in food prices, and deepening the dilemma of central bankers about the extent of raising interest rates at a time when war and sanctions are hurting growth and casting a shadow on the global economy for a long time to come.