The Russia-Ukraine war has exacerbated supply chain disruptions, causing food prices to skyrocket of late. This is because Ukraine is a major exporter of wheat, corn, and vegetable oils, while Russia is a major producer and exporter of wheat and fertilizers. The world’s food costs jumped to new records in March, with the surging prices adding to inflationary pressures. The FAO Food Price Index hit 159.3 in March, registering a 13% increase from February.
Yesterday, corn prices jumped to a new record. The contracts for July corn futures were trading above $8 per bushel, their highest level in nine years. The strong demand for U.S. grain and constrained supplies amid the war have contributed to the surge in corn prices. Investors’ interest in this sector is evident from Teucrium Corn Fund's (CORN) 60.7% gains over the past year.
