The threat of Russian invasion of Ukraine could force buyers of wheat, corn and oil to look for alternative suppliers, leading to rising world food prices. This was reported by "Economic Truth" with reference to Reuters. "The escalation of tensions between world leaders in crop production in Russia and Ukraine is likely to force buyers of wheat, corn and sunflower oil to seek alternative supplies, which will raise world food prices, which are already approaching long-term highs," the newspaper said. Reuters noted that Ukraine and Russia account for about 29% of world wheat exports, 19% of world corn supplies and 80% of world exports of sunflower oil.
Because of this, traders are concerned that any military intervention could affect crop movements and provoke a massive struggle of importers to replace supplies from the Black Sea region. Buyers in the Middle East and Africa will look for alternative sources, "said Reuters experts. According to Refinitiv, in 2021 about 70% of wheat exports from Russia fell to buyers in the Middle East and Africa. Wheat futures in Chicago jumped more than 2% on Tuesday, corn reached a seven-month high, and soybeans also rose. At the same time, compared to the lows of 2021, all three key food and feed ingredients increased by about 40%. Traders say rising tensions have already led some buyers to redirect ships to other suppliers for fear that any outbreak of war would lead to long delays. Ships avoid entering the Black Sea because ...
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