The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on April 11, 2022, 07:31:42 pm
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Policy Changes Could Lessen Food Shortages and Price Spikes - Will Biden Embrace Them?
By The Heartland Institute | Apr 11, 2022 1:00 PM ET
(The opinions expressed in guest op-eds are those of the writer and do not necessarily represent the views of RedState.com.)
Wheat and corn prices shot up after Russia invaded Ukraine, sparking fears of looming shortages of these staple crops.
Russia and Ukraine are responsible for almost 30 percent of global wheat exports and nearly 20 percent of global corn supplies.
Despite the fact that America does not rely on wheat or corn from Russia or Ukraine, because staple crops are traded globally on commodity markets, wheat futures reached record highs in early March shortly after Putin launched his war in Ukraine. In fact, wheat traded 41 percent higher on the Chicago exchange in the first week of March compared to the previous week. That price jump was the sharpest rise in more than 60 years.
Because Ukraine accounts for 13 percent of the corn traded on global markets, corn prices also rose dramatically after the Russian invasion as well. Since the invasion, corn prices have risen more than 21 percent.
Even before the war, however, corn, wheat, and other food prices had been on a steep upward trajectory, and supermarket and grocery store shelves told a tale of shortages of many commodities.
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https://redstate.com/heartlandinstitute/2022/04/11/policy-changes-could-lessen-food-shortages-and-price-spikes-will-biden-embrace-them-n548771