Ukrainian war is disturbing global commodities; economist not optimistic for relief soon
Despite sharp drops in recent days, global ag commodities are up almost 10 percent compared to last year, and it is partly due to the war in Ukraine.
The European Union’s Statistics Office just released new numbers comparing this year’s first quarter to the end of last year. Breaking it down, the cost of fertilizer is up 21 percent overall; energy costs increased 17.4 percent; animal feed is up about 9 percent in that same time period. In the same report, the EU once again lowered its forecast for soft wheat production but maintained its outlook for overall record exports.
As costs continue to rise, one Kansas State ag economist says he is not optimistic they will go down anytime soon.
Gregg Ibendahl says farmers should plan for the possibility of $2,000 per ton for anhydrous, which is about $500 more than DTN originally predicted.
He says fuel prices will likely keep rising, too if supply issues are not corrected. Right now, there are fewer U.S. refineries in business and no new facilities planned.