The dramatic news from Ukraine today and the prospect of prolonged military action is already having an impact on wheat and fuel prices.
Russia and Ukraine are both huge global wheat producers, accounting for 23% of global wheat exports for 2021-22, according to Reuters. They are key suppliers of wheat to the Middle East and European nations.
While the impact on trade, including disrupted supply and even economic sanctions on Russia, is unclear, the threat of reduced export availability has fed through to the markets.
AHDB’s latest price data shows a sudden spike, with feed wheat trading at nearly £234/tonne for March and above £235/t for May.
With the pig sector suffering from record feed prices, which are having a massive impact on finances alongside all the issues associated with the backlog, the last thing the industry needs is any further upward pressure on wheat prices.
Fuel and energy costs are also going to be affected – oil prices have surged past $100 (£74) a barrel to a seven-year high.