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Tensions in Ukraine push up wheat prices

Date:10-09-2023 Number of visits:3297 Font size:T|T
Recently, the news about the situation in Ukraine has been swiped. At present, the situation is far from over. So what impact will the changes in the situation between the two countries and the dispute over Switzerland have on the global food market? I'm afraid this is something many people want to know.
Although the two countries are in high latitude and non-agricultural production period, it is difficult to determine when to end from the perspective of the future expectation of the development of the situation, but no matter from which perspective, it will certainly have some impact on future agricultural production.

In terms of grain production, both countries are large grain producers: according to the data of the U.S. Department of agriculture, the total global wheat production in 2021 / 2022 was 776 million tons, including 75.5 million tons in Russia, accounting for 9.7%; Ukraine 33 million tons, accounting for 4.3%. The total wheat production of the two countries accounts for 14.0% of the world, which shows that they have an extraordinary impact on the global wheat market. Besides corn, in 2021 / 2022, the total global corn production was 1.21 billion tons, including 15 million tons in Russia, accounting for 1.2%; Ukraine produces 42 million tons, accounting for 3.5%. It can be said that only wheat and corn account for a large proportion. If the output decreases due to the situation this year, it will push up the global wheat and corn prices to a certain extent.
Both countries are important exporters of wheat and corn. Data show that in 2021, the total global wheat export was 206 million tons, of which Russia exported 35 million tons, accounting for 16.9% of the world's wheat export; Ukraine exported 24 million tons, accounting for 11.6%. The global corn export is 4.5 million tons, accounting for 2.2%; Ukraine exported 33.5 million tons, accounting for 16.4% of global exports.

In addition to wheat and corn, the two countries are also producers and exporters of important agricultural products such as soybeans, barley and sunflower oil, which will also have a certain impact on the prices of these crops
(Editor: HBA)


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