Wheat and corn markets react to war in world's breadbasket
The already strained supply lines will likely face more stress due to the war in Ukraine
There's a reason why Ukraine is called the breadbasket of the world.
Russia's invasion of Ukraine will more than likely have ripple effects across Europe and the rest of the world. One of the more immediate impacts of the conflict will be a reduction in the supply of wheat and corn.
UKRAINE BATTLES RUSSIAN FORCES: LIVE UPDATES
The already strained supply lines will likely face more stress due to the war in Ukraine. (iStock)
About a quarter of the world's wheat trade and a fifth of the world's corn comes from the region, Bloomberg reports. Since Russia invaded Ukraine, both countries have had to close ports used for exporting goods. It's unknown when either side will be able to reopen these ports again.
On Friday, World Trade Organization Director-General Ngozi Okonjo-Iweala explained that the situation will have a significant impact on the price of bread and other wheat products for regular people.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
About a quarter of the world's grain and about a fifth of the world's corn comes from the breadbasket of the world. (iStock)
Countries that buy wheat and corn from Ukraine and Russia will now have to look elsewhere, putting more strain on international suppliers.
One expert that spoke with Bloomberg explained that the situation will be putting more pressure on areas of the world where supplies are already lower than normal.
CLICK HERE TO READ MORE ON FOX BUSINESS
Barley, one of the key ingredients in making beer, is heavily produced in Ukraine. (iStock)
Fox Business previously reported that due to the wheat shortage, beer is likely to see a price increase over the coming months.
Barley, one of the key ingredients in making beer, is heavily produced in Ukraine. The region is often called the "breadbasket of Europe" due to the high amount of grain grown in the area.
It's unclear what impact this will have on the price of beer, however. Major brewers, like Molson Coors, have reportedly been able to absorb the higher costs while keeping the price the same for consumers.