As the West tightens sanctions against Russia over the invasion of Ukraine, global markets are plummeting, and oil prices are surging.
Wheat futures surged on Monday, indicating that Russia’s invasion of Ukraine is fueling fears of a worldwide grain supply interruption.
The conflict has destabilised one of the world’s most important grain-growing regions, causing market instability for wheat, corn, and other Ukrainian and Russian-produced commodities. According to a CIBC research paper, the two countries account for about a third of all global wheat exports and 19% of global corn exports.
Agriculture officials have warned that any increase in crop prices caused by the war will almost certainly be offset by increase in the production costs, particularly since Russia is a major player in the global fertiliser industry.