The European price of wheat has since hit a 10-year high following Russia’s invasion of Ukraine yesterday. Sawiris explained that Russia’s invasion of Ukraine would cause the commodity’s price to skyrocket due to concerns about the likelihood of disruption to food exports.
A tweet from African billionaire Naguib Sawiris urging the Egyptian government to stock up and purchase extra quantities of wheat prompted concerned talk online, with people linking it with the invasion of Ukraine by Russia on early February 24, 2022.
Sawiris, in his tweet, explained that Russia and Ukraine contribute 30 per cent of global wheat output and that Russia’s recent invasion of Ukraine will cause the commodity’s price to skyrocket as Europe experiences its most dangerous moment since the Cold War.
“We must hurry to buy and store wheat before the Ukraine-Russia war, they produce 30-per cent of the world’s wheat production, and if a war breaks out, all of this will not be available, and the prices will be high,” Sawiris stated in the tweet. The European price of wheat has since hit a 10-year high following Russia’s invasion of Ukraine yesterday. According to reports, wheat prices have risen by 5.6% to $935 a bushel, exceeding previous highs seen in November 2021.
Prior to the conflict, wheat prices were already at high levels. Prices rose 30% last year alone and, according to the UN Food and Agriculture Organisation, “uncertainty over exportable supplies” could cause further price inflation.
Gold prices jumped Thursday to reach their highest level in more than a year, and palladium surged, as Russian forces attacked Ukraine in an extensive air and ground offensive. Gold futures were up 2.8% at $1,965 per ounce, their highest level since January 2021, as of 7 a.m. ET. The precious metal is seen as a “safe-haven” asset in times of crisis, and its gains came as investors fled risk and as global stocks slumped.
Elsewhere in metals, silver rose 3.2% to $25.32 per ounce, its highest level since November last year, while nickel, palladium, and aluminium rose sharply.