The Russian invasion of Ukraine could have a significant impact on the wheat priceas well as endless other industries.
Today there are different countries that are shown as the main producers in terms of food production and other types of elements, which owe part of their success thanks to different factors depending on their category; For example, in the agricultural and agri-food industry, it is due to the indicated climate and advances in terms of technology for its production, thus causing the birth of some importers and exporters, essential for the economy of various countries around the world.
Whether in terms of manufacturing, food, technology and others, there are some countries that have managed to demonstrate their importance worldwide by exporting their national products; according to the study of Statistical where it shows the 20 main exporting countries worldwide in 2020 for its export value, China was the undeniable leader with a value of 2,591.12 billion dollars, the United States was second with 1,431.64 billion, Germany in third with 1,380 billion, the Netherlands in fourth with 674.48 billion and Japan in fifth with 641.38 billion dollars, among other countries that have shown themselves to be indispensable in the economy such as Hong Kong, Italy, Mexico, France and Canada, among many others.
According to the graph of Statistical where it shows the 10 major wheat exporting countries in the world during 2020, state joined exports 26,132 million kilograms of this product, Canada exports, 26,111 million kilograms, France 19,793 million kilograms and Ukraine 18,056 million kilograms; these figures would not represent any change in terms of its price, if the recent Russian invasion of Ukraine.
Recent events have compromised the export and economic growth of Ukrainesince at the moment the country cannot take off air traffic, thus preventing the export of some of its products, such as wheat (which could mean a discharge in your price worldwide if we take into account the law of supply and demand), being one more part of the endless industries that are being affected.
Likewise, the conflict is having repercussions on other types of industries and, therefore, on the economy of different countries. An example of this is shown by Statisticalwho report on increases in the price of oil, gas and gasoline, among other public services and mainly raw materials, apart from oil and precious metals.
Similarly, Russia is also an important wheat farmer, since it would have produced 86 million tons during 2020, only being surpassed by China and India; however, so far Russia has not stopped its economic activity in this sector.
Russia’s invasion of Ukraine is having a direct impact on the economy in different sectors, a fact that will grow in the coming months.