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Wheat Is Going Through the Roof

Wheat Prices

As Russian attacks Europe’s Breadbasket, Wheat prices are increasing sharply.

Russia’s invasion means bread prices will soar in some of the world’s poorest, most fragile countries, potentially igniting a cycle of instability, Matt writes.

Driving the news: Wheat prices shot to a record $12.94 per bushel, and are up an astonishing 70% over the last month, as measured by a type of futures contract on the Chicago Board of Trade.

Why it matters: Throughout history, surging bread costs — see the French and Russian Revolutions — have been a major source of instability and violence.

More recently, soaring food costs, including wheat, have been cited as an important contributor to the wave of instability known as the Arab Spring that swept the Middle East starting in 2011. (Google Scholar)

The big picture: Both Russia and Ukraine are superpowers of the wheat world.

Russia produces 11% of the world’s wheat and is its largest exporter. The two countries together export more than a quarter of the world’s supply.

Axios Markets By Matt Phillips and Emily Peck ·Mar 08, 2022

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