Wheat market, price

The Financial Associated Press reported on May 19 in Shanghai that since the outbreak of the conflict between Russia and Ukraine and hurt the two most important wheat producing countries in the world, the global supply chain has been destroyed, inflation has been “singing forward”, and the voices of protectionism in various countries have become increasingly louder. As a result, about 20 countries in the world have implemented export bans on grain and food, and the grains subject to export restrictions account for about 17% of the total global trade volume.

Wheat exports from the Black Sea region have fallen sharply since the outbreak of the Russian-Ukrainian conflict in late February, and prices of wheat and other commodities have soared. Russia and Ukraine are among the world’s most important wheat producers, and millions of tons of grain are currently stranded in Ukrainian ports due to the conflict. The United Nations has warned that the world faces potential food shortages.

In an April report, the International Food Policy Research Institute (IFPRI) said, “With food prices already high due to COVID-19-related supply chain disruptions and last year’s drought leading to lower production, the outbreak of the Russian-Ukrainian conflict has hit global food markets. It’s a bad time.”

The price of wheat has risen more than 60 percent since the outbreak of the Russian-Ukrainian conflict.