Wheat prices in Europe and Australia hit record highs this week after India – the world’s second-largest wheat producer – announced an immediate export ban due to a severe heatwave affecting the country since March. Global wheat prices have increased 40% since February 2022, increasing famine and sparking social unrest.
The price of wheat in Europe jumped to 438.25 euros per tonne on May 16, breaking the previous closing record of 422.40 set on March 7.1
S&P Global Commodity Insights assessments for West Australia APW hit a record high of $458/mt on May 17, rallying $18/mt on the day, while ASW closed at $426/mt, $16/mt higher on the day.2
On the Chicago Board of Trade, wheat was trading nearly 6% higher in midday trading at $12.48 per bushel.
Wheat prices, exacerbated by war in Ukraine, fertilizer shortages and poor harvests, increased 40% since February 2022. This grim situation is fueling global inflation, increased famine and social unrest.
We are already seeing massive protests taking place in Iran where at least one person was killed and 22 were arrested during recent unrest over food price increases.3 Unofficial sources mention at least 5 people were killed over the past 4 days.
The protests were triggered by a cut in government subsidies for imported wheat that caused price hikes as high as 300 percent for a variety of flour-based staples.4
The government said it will offer digital coupons that will allow citizens to access a limited amount of bread at subsidized prices, while the rest will be available at market rates. The bread scheme will come into force in about two months and will later include other goods such as chicken, cheese and vegetable oil, officials have said.5
1 Wheat prices hit record high after Indian export ban – AFP – May 16, 2022
2 India’s wheat export ban pushes Australian FOB price to record high – S&P Global – May 17, 2022
3 Iran media report 1 killed in unrest over food price hikes – ABC – May 14, 2022
4 Soaring bread prices spark protests and shop fires in Iran, IRNA reports – Reuters – May 13, 2022
5 Iran’s Raisi cuts back on bread subsidies – Financial Times – May 10, 2022
Featured image credit: Sarwar (stillshot)
If you value what we do here, create your ad-free account and support our journalism.
Producing content you read on this website takes a lot of time, effort, and hard work. If you value what we do here, select the level of your support and register your account.
Your support makes this project fully self-sustainable and keeps us independent and focused on the content we love to create and share.
All our supporters can browse the website without ads, allowing much faster speeds and a clean interface. Your comments will be instantly approved and you’ll have a direct line of communication with us from within your account dashboard. You can suggest new features and apps and you’ll be able to use them before they go live.
You can choose the level of your support.
Stay kind, vigilant and ready!