Ukraine conflict drives wheat prices up to 14-year high

Wheat prices have soared, to the highest level since 2008, with global food inflation impacted   after Russian invasion of Ukraine disrupted trade from Black Sea ports.

Prices for wheat surged to a 14-year high last week, leading to costs that will inevitably be passed on to consumers worldwide, Reuters reported.

It said the global Chicago benchmark wheat trading price jumped by 40 percent. That is likely to further drive up global food inflation.

Russia and Ukraine supply almost one third of the world’s wheat exports, the Financial Times reported. Black Sea ports are now at a „virtual standstill”, it said.

Last week Bulgaria said it plans to buy about 1.5 million tons of wheat out of 3 million tons that are still in the country’s silos, Reuters reported. It also might restrict wheat exports until it has carried out the planned purchases.

Traders say Bulgaria is seeing extra export demand as merchants seek to replace grain they planned to ship from Ukraine and Russia.

On Friday, Hungary banned all grain exports due to price increases caused by the Russian invasion of Ukraine.

Julie Marshall, spokesperson for the World Food Program told Reuters that supply disruptions from Russia and Ukraine would affect millions, with the Middle East and North Africa especially vulnerable.

„This is an unnecessary shock of mega proportions,” said Arif Husain, chief economist at the UN World Food Program

Even before the crisis,  wheat supplies fell to a nine-year low,  Reuters said.

The cost of oil and gas has also surged due to some Western countries’ sanctions against Russia.

Soaring gas prices halt production at Romania’s largest fertilizer plant



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