Wheat and corn prices have risen by 37% and 21% respectively so far in 2022 and may rise further as Russia’s invasion of Ukraine continues. In preparation for the Russian invasion, Ukraine’s military has closed merchant shipping in its ports, sparking global fears of potential food shortages as a result.
THE WAR RUSSIAN-UKRAINE DANGERED THE ANIMAL FOOD BANK TO COLLECT MONEY FOR ENDANGERED DOMESTIC DOMESTIC AND ANIMALS IN THE REGION
Ukraine has long been considered the “bread basket of Europe” because of its rich soil. The nation accounts for 12% of the world’s wheat exports, according to the US Department of Agriculture. It is also estimated that this year it will provide 16% of world corn exports.
According to Statista, Russia produced 75,500 metric tons and Ukraine produced 33,000 metric tons of wheat in 2021. As for corn, Russia produced 15,000 metric tons and Ukraine produced 42,000 metric tons in 2021.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| WEAT | TEUCRIUM COMMODITY TRUST WHEAT FUND | 11.14 | +1.56 | + 16.30% |
| CORN | TEUCRIUM COMMODITY TRUST CORN USD | 25.50 h | +0.29 | + 1.15% |
| DBO | INVESCO DB MULTISECTORAL COMM. TR OIL FD ETF | 16.93 | +0.23 | + 1.38% |
Concerns are coming as inflation develops at its hottest pace in nearly four decades. Base prices, which exclude more volatile food and energy measurements, rose 5.2% in the year to January, according to the personal consumption price index. Including food and energy, inflation jumped 6.1% in January from a year earlier, the strongest increase since February 1982.
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The World Food Program warns that 811 million people go to bed hungry every night around the world, with the number of people facing acute food insecurity jumping from 35 million to 276 million by 2019. A total of 44 million people in 38 countries are rocking the edge of hunger.
“We get 50% of our grain from the Ukraine-Russia zone. This will have a dramatic impact on food, transport, oil and fuel costs,” said WFP Executive Director David Beasley. “It’s a catastrophe on top of a catastrophe.”
The UN refugee agency estimates that more than 1 million Ukrainians have fled the country since the conflict began.
Megan Henny of Fox Business and the Associated Press contributed to this report