Tension between Ukraine and Russia could make food even more expensive

Although Russia has not actually invaded Ukrainian territory, geopolitical tension is already affecting the prices of some commodities, such as corn and wheat. According to the economics analyst at CNN Priscila Yazbek, both countries are important in the production of these raw materials.

Russia, for example, is the second largest wheat exporter in the world, accounting for 17% of the market. While Ukraine corresponds to 11.6%, the fourth largest exporter of the product. Together they correspond to 28.6%.

As for the corn market, Ukraine is the fourth largest exporter of the raw material, corresponding to 16.4% of the market. Russia is the sixth country, with 2.2%. The two countries export 18.6% of maize.

“In this way, it is possible for prices to increase and, consequently, the products that require wheat can be valued”, says Yazbek. “As well as proteins, as corn is used as animal feed”.

The analyst also highlights that “even though the invasion has not yet taken place, due to the commodities being traded in futures contracts, prices have already risen”. Corn is already up about 35% on the global market and wheat about 4%.

This is the second year of high food prices. In 2021, commodities rose about 28%. And they are heading for the most valued prices in 10 years.

Oliver Stuenkel, professor of International Relations at FGV, in an interview with CNNsaid that Russia came out of the Cold War humiliated and is now trying to regain power in Eastern Europe.

According to him, the market will have to get used to the tense climate, even if the invasion does not occur. And that will further affect food prices around the world.

*Posted by Artur Nicoceli, from CNN Brasil Business