Ukraine has earned the nickname “breadbasket of Europe” for its rich dark soil, vast wheat fields, and other farm goods. The Russian invasion has cut off the world from cheap and abundant wheat supplies.
Ukraine and Russia are vital to the global food supply, accounting for more than a quarter of global wheat trade, about a fifth of corn, and 12% of all calories traded globally, according to Bloomberg.
Reuters reports Ukrainian ports will remain closed until the Russian invasion ends and maritime security is restored for commercial ships.
This means all shipments of farm goods from Ukraine have ceased, and commodity traders will have to search elsewhere.
Activity at Ukrainian ports has been halted since Russia invaded its neighbor last week, and grains trade from Russia is also effectively on pause. Sanctions have been ratcheted up to further isolate commodity-rich Russia from global finance by sanctioning its central bank and cutting off various leaders from the critical SWIFT financial messaging system.
Restricting grain supplies from the Black Sea region threatens to further boost global food prices that are near a record high, at a time when supplies are already strained with adverse weather in many growing regions. – Bloomberg
“If the conflict is prolonged — three months, four months from now — I feel the consequences could be really serious,” Andree Defois, president of consultant Strategie Grains, told Bloomberg. “Wheat will need to be rationed.”
Michael Magdovitz, a senior analyst at Rabobank, said Ukraine and Russia had increased harvests and exports in the last decade at a far lower cost than western farmers, which helped keep wheat prices low. However, that’s not the case today as the Russian invasion sends wheat futures trading in Chicago to a six-year high.
“I’m not going to put a lid on what might happen,” Arlan Suderman, chief commodities economist at StoneX, told Bloomberg. “We could easily be looking at record prices.”
Kyiv-based researcher UkrAgroConsult warned, “the chain of product creation, from cultivation to port shipments, is paralyzed.”
This brings us back to Goldman’s Global Head of Commodities Research Jeffrey Currie, who told Bloomberg TV earlier this month that he’s never seen commodity markets pricing in the shortages they are right now.
“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie told Bloomberg TV in an interview on Monday. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
As supplies tighen, the Bloomberg Agriculture Spot Index soars to new record highs.
The disruption comes as global food prices are already nearing record-highs and could soon be catapulted into unknown territory.
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All planned chaos… When will the People recognize the dirtballs and mobilize against these slimes?!?!? When will the security details become insufficient for the dirtballs like gates, swaub, soros, rothchilds where they can not longer move about in safety.
When…
ADDED: Canada alone could feed and supply the worlds population of wheat as could the US. So the Ukraine is NOT the worlds breadbasket. Planned chaos, control the food control the people…
I have a mental image of the bison prepper guy chewing on a bowl of wheat gruel and waving his spoon around and laughing at yuppie scum.
dried pasta is a cheap and easy way to store grain – and it’s cheaper at the Dollar Store than in those online emergency food buckets
I’d advise tossing in some heavy duty totes for rodent-free storage, and food grade diatomaceous earth for creepy crawlers, but I think I’m preaching to the choir
PS I bought a cheap second fridge, who knows what they’ll cost soon – voilà – ANOTHER pantry!
Store bay leaves in pasta. Them little buggers don’t seem to care for bay leaves at all.
Kissinger and Schwab are smiling about this
I’ve been told by health gurus that wheat is not the health food some make it out to be. So I have to cut down on my intake anyway. I consider the shortage a good thing. Besides, I had to walk through the mall yesterday to meet a friend. I was flabbergasted at the number of fat people. I mean folds of ungodly fat hanging down over their waists. Fat Albert kind of fat. Food shortages could help save their lives and cut down on our national medical bills. So I consider wheat shortage a plus. A vodka shortage is quite another thing. Everything possible must be done to keep those Smirnoff production lines in Moscow in full operation. The crazier this world gets, the more important it becomes.
Forget health gurus. Forget the fatfucks (I see them too). Look at the big picture.
Corn and soy, and in some ways wheat, are big problems. But they are staples and animal feed. At the same time as cultured meat is being pushed, meat is being discouraged. Healthy food is getting harder to get, not easier. Fertilizer is being cut off. At the same time, everyone is trying to export to China and Brazil.
Where do you think that leaves us? Do you expect things to just return to normal after you drop 20 lbs?
When a basket of groceries hits $500-$700 that fat around your waist becomes an asset, a lot of people may need to live off that fat for a while….
Wheat prices soaring in February/march are the result of commodities speculators- you know who- not production or harvest of something that won’t even be planted for another month and a half.
You mean the guys that produce nothing, but rob the wealth of those that produce actual product are predicting higher prices??? Weird…
But … but ….. I thought Russia was just a GAS STATION masquerading as a nation??!!!
Yup, heard that a bunch of times in the past week. That, and, Russia’s economy is smaller than Italy!!
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hahahahaha Ya know what must really suck for ignorant warmongering shitheads? REALITY … WHEN IT BITES YOU IN THE ASS!
American policy makers not only ignored Russia’s security concerns – they also gloried in mocking them as a country. What could possibly go wrong?
Hmm, I love the smell of utter bullshite in the morning.
Why oh why are only Russia and Ukraine counted together?
And please ZH point us to the concern you voiced (in written form), when Russia was cut off from Ukraine in 2014.
I wonder what % of politician money laundering and bioweapon development occurred in Ukraine.
Add this to the fertilizer shortage and it is going to be an interesting year… I would not be at all surprised to see the costs of all crops raising 60% or more by summer. Your grocery bill may soon be higher than the payment on that $60K pickup truck…..
This truly has a remarkable connection to the 3rd Seal of Revelation. It reads:
“…And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.”
Looking at the seals through the lens of the world economy and finance where the False Prophet gains the ability to control the world buying and selling, we see here that the rider holds the pair of balances, interpreted to mean that he now holds the world economy in his hand. After the first seal of conquering the world through usery, and the 2nd seal through war, it is all under his control now. This has become evident over the last few years, as the bankers now control the world’s trade system through Vanguard, Blackrock, State Street, etc. You can see the headlines where companies, controlled by these institutions, are jumping on board with the sanctions.
The wheat and barley mentioned has an uncanny connection to Russia and Ukraine and this “war”. The price of grain will go exponentially higher as the trade chains intentionally become disrupted even further. Because the rider has full control of the economy, he has the power to manipulate the price of grain and we are seeing this come alive in front of our eyes. This planned war, and the planned stupid sanctions hurts the populace. It’s intent is to hurt the lower classes, not those of the oil and the wine.
When the big crash finally happens, the 4th seal begins and all hell breaks loose.