Wheat Prices Soar as Russia Threatens to Block Grain Exports

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Wheat Prices Soar as Russia Threatens to Block Grain Exports

Wheat prices soared on Wednesday after Russia warned that it could block grain exports from Ukraine, a major global supplier. The move would further disrupt global food supplies and could push up prices even higher.

Russia is one of the world’s largest exporters of wheat, and Ukraine is the fifth-largest. Together, the two countries account for about 25% of global wheat exports.

The war in Ukraine has already disrupted grain exports from the country, and Russia’s latest warning could make the situation even worse.

“If someone intends to block our exports, then they must clearly understand that this will have the most serious consequences,” Russian President Vladimir Putin said on Wednesday.

The threat from Russia sent wheat prices soaring on the Chicago Mercantile Exchange. The price of wheat for September delivery jumped 8.5% to $8.44 per bushel, the highest level since March 8, 2022.

The surge in wheat prices is a major concern for food security around the world. Wheat is a staple food for billions of people, and rising prices could lead to food shortages and even hunger.

The United Nations has warned that the war in Ukraine could push up global food prices by up to 20%. This could have a devastating impact on the poorest and most vulnerable people in the world.

In addition to wheat, Russia is also a major exporter of corn and sunflower oil. These commodities are also likely to see their prices rise if Russia blocks exports.

The rising cost of food is already a major problem in many countries around the world. The war in Ukraine could make the situation even worse, and could lead to widespread hunger and malnutrition.

The Turkey flagged TQ Samsunhe, the last grain ship that left a Ukrainian port since Russia exit the Grain Corridor Agreement one day earlier, is seen in the Marmara Sea, in Istanbul, Turkey, 18 July 2023

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