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Five Signs, Led by Grains, Say Food Prices Will Keep Going Up

Agricultural commodity prices say food price inflation has not yet peaked.
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Wheat Futures chart courtesy of Nasdaq

Wheat Futures chart courtesy of Nasdaq

Soybean Futures 

Soybean Futures chart courtesy of Nasdaq

Soybean Futures chart courtesy of Nasdaq

Corn Futures 

Corn Futures chart courtesy of Nasdaq

Corn Futures chart courtesy of Nasdaq

Live Cattle Futures 

Live Cattle Futures chart courtesy of Nasdaq

Live Cattle Futures chart courtesy of Nasdaq

Lean Hogs

Lean Hogs Futures chart courtesy of Nasdaq

Lean Hogs Futures chart courtesy of Nasdaq

Global Wheat Exports

The Wall Street Journal reports Russia-Ukraine Tensions Drive Global Wheat Prices Higher

The two nations combined account for 29% of global wheat exports, according to data from the U.S. Agriculture Department. The nearby Black Sea serves as a major conduit for international grain shipments and Ukraine is also among the top exporters of barley, corn and rapeseed.

The mounting tensions and growing militarization along the Russia-Ukraine border have helped drive wheat futures traded in Chicago up over 7% over the past two weeks to nearly $8 a bushel Monday—which is just below a nearly decade high of $8.50 a bushel reached last year.

Ukraine is renowned as the breadbasket of Europe, thanks in part to its nutrient-rich “black earth” soils. But its key wheat growing regions and ports lie in Ukraine’s south and east, putting them close to Russian-held territory, analysts said. Ukraine’s Kharkiv Oblast, which borders both Russia and the separatist-held regions of Luhansk and Donetsk, is Ukraine’s most productive wheat region, according to data from the USDA.

Black Sea Geoeconomics

Data from USDA chart courtesy of Aljazeera

Data from USDA chart courtesy of Aljazeera

Aljazeera comments on Russia, Ukraine and the Global Wheat Supply.

Russia is the world’s largest exporter of wheat, accounting for more than 18 percent of international exports.

In 2019, Russia and Ukraine together exported more than a quarter (25.4 percent) of the world’s wheat, according to the Observatory of Economic Complexity

Percentages are higher today. 

Corn Too

Reuters reports Ukraine’s unmatched corn crop gains encroach on rival exporters

Today, Ukraine accounts for 16% of global corn exports and 12% of wheat, but the Black Sea country was nearly a non-factor in trade at the start of the century, especially for corn.

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This post originated on MishTalk.Com.

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