The price of a bushel of wheat has risen significantly since the Ukraine War began in late February of this year. It has gone from less than eight dollars per bushel, to nearly thirteen dollars per bushel as of early March.
This is a fourteen-year high for wheat, exceeding its peak during the 2008 financial crisis. The peak of wheat’s price per bushel during the 2008 crisis was $12.83, shown below; as of early March 2022 it has risen to $12.94.
Why is this happening? Partially because of the Russia-Ukraine situation. Combined, the two countries export about 25.43% of the globe's wheat, according to 2019 data provided by the Observatory of Economic Complexity. The expectation around the world right now is that supply won’t be able to meet demand in the coming months. Although, not all of this can be attributed to the Russia-Ukraine situation; wheat can be seen climbing in price as early as 2019. A lot of the reason for the price rise has been due to the global wheat inventory remaining stagnant during COVID. The situation in Eastern Europe has only aggravated this issue. Price fluctuations can be seen in other industries as well; including, oil, lumber, nickel, gold, and others.
Sources:
McCabe, C. (2022, March 8). Gold Price Surges Above $2,000 to Highest Level Since 2020. WSJ. https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-07/card/gold-price-surges-above-2-000-to-highest-level-since-2020-qgwY20qn7okINzTyAc9k
Alexander, I. (2022, March 8). Why Are Lumber Prices So High—and Are They Going Down in 2022? Newsweek. https://www.newsweek.com/why-are-lumber-prices-so-high-are-they-going-down-2022-1681105
Khan, S. (2022, March 9). Oil surges as U.S. bans Russian crude, Britain to phase out purchases. Reuters. https://www.reuters.com/business/oil-see-saws-near-14-yr-highs-us-weighs-russia-oil-embargo-2022-03-08/
Yue Li, Y., & Burton, M. (2022, March 7). Nickel Surges 90% to Record With Threat of Shortages Mounting. Yahoofinance. https://finance.yahoo.com/news/nickel-jumps-record-high-supply-180319723.html
Saefong, M. P. (2021, November 11). Why prices for wheat have climbed to their highest level since 2012. MarketWatch. https://www.marketwatch.com/story/why-prices-for-wheat-have-climbed-to-their-highest-level-since-2012-11636653340
Nilsson, S. (2019). Wheat (HS: 1001) Product Trade, Exporters and Importers | OEC. OEC - The Observatory of Economic Complexity. https://oec.world/en/profile/hs92/wheat
Park, S. (2022, March 8). Wheat prices hit 14-year high, food shortage fears rise. Fox Business. https://www.foxbusiness.com/economy/wheat-prices-food-shortage-fears
Wheat Prices - 40 Year Historical Chart. (2022). MacroTrends. https://www.macrotrends.net/2534/wheat-prices-historical-chart-data
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