Wheat prices are rising again, hitting a 14-year high of more than $ 12 today, as the war in Ukraine has blocked more than 25 percent of world exports of one of its main foodstuffs.
At the same time, wheat prices are on track for a record weekly rise, as they have risen by about 40% since Russia invaded Ukraine and the West has responded by imposing tough sanctions.
The war has led to the closure of major ports in Ukraine and cut off supply links, with raging fighting threatening to plant crops in the coming months.
At the same time, international trade with Russia has largely been frozen, with buyers fearing the complexity of sanctions imposed on Moscow at a time when insurance and fare costs have skyrocketed.
Russia and Ukraine are also major suppliers of corn, barley and sunflower oil, with corn at its highest level since 2012, while soybean and palm oil are also on record.
Meanwhile, China, the world’s largest importer of corn and soybeans and one of the leading buyers of wheat, is trying to secure basic supplies on world markets, thus helping prices rise.
In this climate, wheat contracts made a new leap today, covering the upper daily range, rising 6.6% to $ 12.09 a bushel. Citigroup even estimates that in its extreme scenario, in which its exports Black Sea will remain closed, prices will reach up to 14 to 14.5 dollars per bushel.
At the same time, corn sees its price rise today by 1.4% to $ 7.57 a bushel, while moving for its biggest weekly profits since 2008 with an overall increase of 17% per week.
Source: Capital
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