Not just metals, gas and oil. The tensions triggered by the protracted war in Ukraine are also impacting some of the most important food raw materials with a more limited supply. Indeed, the conflict raises long-term supply problems. The prices of wheat and palm oil are soaring. Also increases for rice, sugar and corn.
In particular, wheat touches a 14-year high, at the top since March 2008. Chicago wheat futures rose 7.5% to $ 12.59 per bushel. Since Russia launched the campaign it calls a “special military operation” on February 24, commodity markets have increased.
The grain market rose more than 40% last week, its largest weekly increase. Corn rose 2.7% to $ 7.75 a bushel, soybean rose 2.1% to $ 16.95 a bushel – both are at their highest since September 2012. “Until the fighting in Ukraine ends. , wheat and corn exports from Ukraine and Russia cannot be expected to resume, “a European trader who prefers to remain anonymous told Reuters.
Russia and Ukraine also supply 80% of the world’s sunflower oil exports, which competes with soybean oil. Palm oil also leaps (+ 5.19%). Ukrainian ports remain closed and traders are reluctant to trade Russian grain after Western sanctions, so buyers are looking for alternative suppliers. EU grain export demand increased last week and is expected to continue growing.