Unfavorable weather conditions, the conflict in Ukraine, and military action in the Middle East could lead to a new wave of rising food prices, APA reports citing Bloomberg.
Russia and Ukraine account for more than a quarter of global wheat trade, two-thirds of sunflower oil exports, and a tenth of corn exports, but shipments via the Black Sea are difficult. The situation is exacerbated by Europe facing extreme heat, drought, and wildfires, which could lead to the largest decline in grain production in decades. Furthermore, the US and Israeli military operation against Iran has led to rising fuel and fertilizer prices.
Another factor negatively impacting the global food market is the El Niño climate phenomenon, characterized by abnormally high surface water temperatures in the Pacific Ocean. This could negatively impact key rice producers and exporters, Bloomberg notes.
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