Based on the following linked chart showing who buys Ukrainian and Russian wheat, one can be almost 100% certain that there will soon be grain and/or food shortages in many areas of the globe:
If US and Canadian farmers decide to sell to the highest bidder, expect serious inflation in the price of wheat and other grains in the coming months. That means everything from pasta to crackers will be pricier - exactly what we don’t need.
The disreputable Tyler Durden reports that Hungary has just banned export of its substantial wheat production, along with a prediction that a food-driven equivalent of 2011’s “Arab Spring” may be the logical result of what I call “Mad Man Putin’s Insane Ukrainian Adventure™.”
Just hours after we reported that Russia effectively banned exports of fertilizers, moments ago Hungary - one of Europe’s most grain rich nations - has circled the wagons and realizing which way the wind is blowing, just announced that it will [be] banning all grain exports effective immediately, in a statement…
Expect wheat prices, already at record highs, to promptly double from here in the next few weeks as the world realizes the extent of the global food crisis that is coming. Our suggestion: buy flour, rice, barley and any other grains you can now, rather than waiting one month to buy them because you have to.
I expect that DW will want to order an extra bag of flour, some cake mix, and pasta this week. I may try to fit a few extra loaves of sliced sandwich bread in the freezer. If all else fails, Smuckers ought to be able to supply enough peanut butter and jelly to keep my belly full until “Mad Man Putin’s Insane Ukraine Adventure™” comes to an end.
It seems we are cursed to live in “interesting times,” as Jeff often says. Others may call it a Fourth Turning or an Elliott Wave. Whatever you call it, we have witnessed too many insane men accede to leadership positions worldwide.
Vladimir Putin seems to be hell-bent on proving that he is more off-his-rocker than any crazy strong man in a century of particularly violent insanity.