Russia Ukraine will increase tension, inflation, wheat, soybean prices reach record level in foreign markets
Russia and Ukraine account for 29 percent of the world’s wheat production, 19 percent of corn supply and 80 percent of sunflower oil exports.
Wheat at 9 year high in foreign markets
between Russia and Ukraine crisis ,Russia Ukraine CrisisThe effect of ) is seen reaching beyond oil and gas prices to food prices. After Russia’s attack, in the US futures market Wheat , Wheat Price And there has been a record jump in soybean prices. Along with this, there has also been a rise in the prices of maize. At the same time, due to the impact on the supply of barley, there is an anticipated increase in prices. food prices (Food Price) has increased the risk of inflation reaching new levels around the world. At the same time, due to the rise in international markets, there is a possibility of an effect of increase in prices on India.
Where did the prices of food prices reach?
After the attack, the prices of wheat and soybeans in the US futures market have seen the maximum increase of the day. With this increase, soybean prices reached their highest level since 2012. At the same time, the prices of wheat are at the highest level of 9 years. Mecca is at an 8-month high. In today’s trade, wheat has increased by 5.7 percent in May contract, 4.7 percent in maize, and 2 percent in soybean.
What will be the effect of increasing crisis on food prices
Earlier this month, Robobank gave estimates of the impact on food prices under different circumstances. In the first situation, if there is a war, there can be a 30 percent increase in the prices of wheat and 20 percent in the prices of maize. The bank had warned that in the event of strict sanctions on Russia, the prices of cereals, edible oils and fertilizers will see a rise. At the same time, the bank has given an estimate that if the restrictions on Russia remain till the harvesting of the next crop, then further increase in prices is possible. The price of wheat may double and maize may increase further by 30 percent. The situation may return to normal only next year.
How much is the share of Russia and Ukraine in food grains
Russia and Ukraine account for 29 percent of the world’s wheat production, 19 percent of corn supply and 80 percent of sunflower oil exports. Russia is the world’s second largest producer of barley and Ukraine is the fourth largest producer. Traders fear that due to the current crisis, the supply of these food grains may be affected across the world, which will lead to a rise in prices.
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