Wheat prices boom after Russian invasion of Ukraine
Spring wheat climbed roughly 15%, an almost 60-cent increase.
FARGO — The crisis in Ukraine has made world wheat markets jump.
"Looking at today's prices, we've had about a 50-cent, almost 60-cent a bushel increase in spring wheat, which is pretty significant, when you look at a base price of about $9 per bushel," said Frayne Olson, Crop Economist and Marketing Specialist at North Dakota State University.
While it may sound like good news for farmers, the jump in prices has elevators making changes to protect themselves.
Some have been forced to stop buying.
"I noticed they were buying grain early on this morning and maybe an hour or so after trading, they they put on their website no bids available at this time... that's never happened to my knowledge," said Tom Bernhardt, a wheat grower and chairman for the North Dakota Grain Growers Association.
He said when that happens, some farmers may be inspired to sell quickly to capitalize on higher prices, but are stuck waiting until trading continues.
And the whole situation may end up costing them in other areas.
"That will be relatively small compared to the energy portion of the equation. So I do expect to see prices at the food counter go up unfortunately again, but mainly driven by that this petroleum costs and the increase in in delivering the products," said Olson.
As for when the price hike will stop, Olson said that entirely depends on the length and outcome of the conflict.
And told us, these impacts are only the effects of supply chain stoppages, and that further sanctions could make things even worse.