Crisis in Ukraine Can Cause Wheat and Corn Prices to Rise

Crisis in Ukraine Can Cause Wheat and Corn Prices to Rise
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Crisis in Ukraine Can Cause Wheat and Corn Prices to Rise

Read on to learn more about how the situation in Ukraine could affect the prices of wheat and corn.

According to the Wall Street Journal, the prices of wheat rose when Russia's military seemed to tighten its control over the Black Sea region in Crimea. Traders speculated that buyers of corn and wheat might switch to shippers from the U.S.

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The Crimean peninsula juts into the Black Sea, where Russia's naval power resides.The unrest could threaten those shipping lanes.

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Bloomberg reports that Ukraine is likely to be the third-largest shipper of corn this year. According to The International Grains council, Ukraine is the sixth-largest supplier of wheat.

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Wheat and corn are very important to the global food supply. A recent study found most people depend on wheat and corn in addition to other crops like soy, dairy and meat.

Image Credit: Getty Images

The cost for wheat delivery in May climbed 4.9 percent to $6.315 a bushel, which is the highest advance since September 2012 on the Chicago Board of Trade. Corn experienced a similar jump, increasing by 1.5 percent for a total of $4.705 a bushel.

Image Credit: Getty Images


The situation in Ukraine has caused a lot of tension amongst the global community.

One side effect of the political unrest that most may not think of is the potential rising cost of wheat and corn. The cost of various foods have risen this year, but in the case of wheat and corn, it is especially tied to Ukraine's political unrest.

Check out the slideshow above to learn more about how Ukraine's politics could affect the cost of wheat and corn.

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