Ukraine War and Oklahoma drought will push bread prices higher
We are already feeling the impact of the Russian/Ukraine War at the gas pump. Next, we will feel it at the bread store.
Ukraine is a huge producer of wheat. It is often called Europe’s breadbasket. Combined, it and Russia account for 25-percent of the world’s grain export market. But those exports are now halted because of the war.
Oklahoma’s largest cash crop meanwhile is wheat. With the conflict, one would assume that would increase the demand for the Oklahoma product. Not so, says the director of the Oklahoma Wheat Commission.
Mike Shulte says this year’s Oklahoma’s crop is not looking good. He declined to give an estimate on potential yields per acre but says the lack of rain is taking a toll. In fact, he calls the crop predictions “pretty dismal.”
Shulte says wheat commodity prices are moving higher every day. It is a trend he expects to continue. By summer, the price of bread, hamburger buns, flour and anything made from wheat will go up in price.
Oklahoma’s wheat harvest will begin in earnest in mid-Day.