Deepening Russia-Ukraine Tensions Likely To Drive World Food Prices Up

Escalating tensions between global crop heavyweights Russia and Ukraine are likely to force wheat, corn and sunflower oil buyers to seek alternative shipments, driving up world food prices already near multi-year highs, analysts and traders said.

With the two countries accounting for around 29% of global wheat exports, 19% of world corn supplies, and 80% of world sunflower oil exports, traders worried that any military engagement could impact crop movement and trigger a mass scramble by importers to replace supplies from the Black Sea region.

A lack of supplies from the Black Sea region could lift demand for the bread-making ingredient from the United States and Canada.

World food prices already hover near 10-year highs, led by strong demand for wheat and dairy products, the U.N. food agency said late last year.

ESM