Call it a concern. Call it panic. Call it whatever you want. There is growing concern over food supplies due to the Russian invasion of Ukraine. The small Black Sea country is the breadbasket of Europe and is a major exporter of wheat, sunflower oil, corn, and potatoes.
Some countries are starting to look at protectionist policies when it comes to their own food supplies as well. India is contemplating if they will export wheat, and Malaysia has stopped palm oil exports as well.
The blockade of Ukrainian ports by Russia means that about 4.5 million tons of grain are in limbo. Missouri Senator Roy Blunt talked about the crisis agriculture faces in that country.
25 percent of world wheat, 20 percent of world corn, and 90 percent of sunflower oil come out of Ukraine and Russia, and the Russians have made it impossible for ships to move according to AFBF?s Dave Salmonsen.
While there were issues relating to inflation before this crisis, Senator Blunt says that this impact is much more than just inflationary reactions.
The situation is continuing to help commodity prices, but it also raises input prices and erodes profits for American Farmers.
