Wheat prices hit a 14-year high as fears of a supply crunch increased.
Wheat futures were up 40% in contracts traded in Chicago last week, increasing food prices that have already been dealt a blow by seven-year high oil prices that push up transport costs.
Russia is the world’s biggest exporter of wheat, selling 36.5mln mt in 2021-22, while Russia and Ukraine collectively account for around 29% of global wheat exports.
Supply within Russia was already dealt a blow, with the last wheat harvest 10mln mt lower this year.
Rising wheat prices are expected to impact both products where it is a key ingredient like pasta and bread, and the price of meat due to the requirement for wheat-based animal feed.
“There are concerns that Russian supplies of wheat and other grains it exports will be impacted because of sanctions,” said ThinkMarkets analyst Fawad Razaqzada.
“Countries in the Middle East and North Africa that rely on massive wheat imports from these and surrounding countries will feel the pain, not just because of reduced supply but also higher prices.”
The Telegraph reported that British shoppers face paying 20% more for a loaf of bread as a result of the myriad cost increases.