Wheat prices soar — but will the costs remain high?

Wheat prices soar — but will the costs remain high?

According to DW, Until the end of February, few would have described the wheat trade as an exciting business. Global market prices for the commodity had been hovering around €200 ($312) a ton for many years. But with the war in Ukraine, this has changed fundamentally.

Russia’s invasion of its neighbor has caused the commodity to jump to €400 per ton — a doubling that has come as a shock, especially for poorer countries whose citizens spend a significant amount of their disposable incomes on food.

Out of a total worldwide wheat harvest of 785 million tons annually, only about one quarter ends up sold as a commodity on the global market. Most of the wheat is consumed as part of people’s daily diet in the countries where it is produced. Quality and prices can differ widely depending on the growing region. Continue Reading

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