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The turbulent conditions in Ukraine cast a shadow over the global food basket, which gave Russia and Ukraine the size of the basket. Its export.
According to CNN Arabic, the Food and Agriculture Organization’s average food price index reached 140.7 points last February, up 3.5 points or 3.9% from January, its new high. Last month..
The vegetable oil sector, up 8.5%, was the most expensive in the index with 15.8 points, a new record. The rise in prices of palm oil, soybean and sunflower has led to a sharp rise in prices..
In February, global palm oil prices rose for the second month in a row due to lower exports from Indonesia, the world’s largest palm oil exporter, and sustained global import demand. Global prices of sunflower oil have also risen sharply due to concerns over Russian military action leading to a drop in exports. As the price of crude oil has risen sharply, so has the price of vegetable oils.
Besides, prices of dairy products around the world are rising due to demand in Asia and the Middle East. Meat prices rose slightly and sugar prices fell.
The prices of all major cereals rose from their value last month. Global wheat prices rose 2.1%, reflecting new uncertainty in global supplies amid turmoil in the Black Sea region, which could prevent exports from two major wheat exporters, Ukraine and Russia..
According to the American newspaper “Financial Times”, Russia was the largest exporter of wheat in 2021, Ukraine was the fifth largest, and the two countries together accounted for one-third of the world’s wheat supply, plus corn and 80% of sunflower oil. It is not surprising that the world food market is now on a feverish pitch.
According to the newspaper, wheat prices on the Chicago Stock Exchange immediately rose 50% as soon as the Ukrainian events began.
As of March 9, its prices in the world market are 60% higher than they were at the beginning of the year. On March 10 the price was slightly lower.
The price of corn has also peaked since 2021, most of which comes from Russia and Ukraine. Grain trade with Ukraine has now been halted in practice, the newspaper report confirms. Russian deliveries continue, with major difficulties due to restrictions and problems with carriers, which also contributes to the increase in prices.
This, and experts expect a decline in grain production due to the problem of fertilizers, whose prices have risen sharply because Russia and Belarus are still the main suppliers of cheap fertilizers..
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