Wheat, corn prices surge deepening consumer pain

Consumers facing higher prices for products made with corn and wheat could be in for more pain as global supplies grow tighter because of Russia’s invasion of Ukraine.

Wheat prices jumped 37 percent and corn prices soared 21 percent so far in 2022 after rising more than 20 percent in 2021. Persistently rising inflation has already prompted companies like Kellogg’s and General Mills to raise prices and pass the costs off to consumers and that pattern may worsen with the current crisis.

Ukraine has long been considered a “breadbasket” because of its rich soil. The nation accounts for 12 percent of the world’s total wheat exports, according to the United States Department of Agriculture. It is also estimated to supply 16 percent of the world’s corn exports this year. Food producers in the US get most of their raw materials domestically, but any drop in production and exports from Ukraine would reverberate globally through price increases.