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The war between Russia and Ukraine can stimulate wheat production in South America
Apr, 12, 2022 Posted by Gabriel MalheirosWeek 202215
The conflict between Russia and Ukraine, and its impact on global wheat commerce, may inspire South American nations to raise their output of the product, as the two Eastern European countries are among the top exporters of the commodity.
“The high price of wheat following the severe shock to agricultural commodity markets caused by Russia’s invasion of Ukraine is undeniably an incentive to boost wheat planting in Argentina and Brazil,” University of Illinois professors said in a paper.
However, they noted that high fertilizer prices are a limiting factor for any production increase. In this most recent survey, which studies prices through April 1, DTN said that prices for some types of fertilizers have risen to record levels in recent weeks.
Source: Money Times
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