The Pillsbury Dough-Boy, Wheat, And The Ukraine War

The cost of bakery products is expected to rise as the Russia-Ukraine war disrupts more than 25% of world grain and corn supplies.

There is much talk about the disruption in the oil market due to Russia’s invasion of Ukraine. However, oil is not the only commodity affected by Russia’s recent aggression.

Wheat prices have risen to their highest point since 2008, during the financial crisis.

Prices traded up to $ 9.60 a bushel on Friday before dropping to $ 9.34 as of this writing.

According to Seeking Alpha, “Russia and Ukraine account for ~ 29% of world wheat exports, 19% of world corn supply and 80% of world sunflower oil exports.”

And in other bad news, Commerzbank says that “about 15 million tons of wheat exports from the Black Sea region could be at risk” as a result of the Russia-Ukraine war.

The problem will be exacerbated because Turkey threatens to prevent Russian vessels from navigating the Black Sea. This means that the prices of goods from bread to delicious bakery treats can increase.

The Pillsbury Dough Boy will demand more money for his services in the foreseeable future.

Thanks, Putin!

American bakers are forced to pass on these high costs to consumers, which means the cost of these Polish patches is going to be more expensive during the loan season.

The Poles know what I’m talking about …

Pastries like Pachkis are made using soybean oil, which has also seen prices rise by 80% in the past year.

Bakers not only had to deal with high grain costs, but faced the currently common shortage of workers, supply chain troubles, packaging problems and components that are hard to find. Also, the cost of a blanket of unbleached white flour increased by 36%

Oh, and then there is the impact that oil prices have on industry.

Maybe you’re thinking to yourself, “What’s the connection between oil prices and bakery prices?”

Very good question, smart readers out there!

Well, you see, wheat products are not transported but Scottish from Star Trek to the Bakery. They must be transported by truck, which requires gas to run.

Now that fuel prices are higher, suppliers are charging the bakers more for their efforts, causing some bakers to once again pass on the increased costs to consumers.

How about an economics class? Economics 101.

So, Happy Tuesday to all my Polish friends – or just to those who enjoy a good pastry. Just be prepared to spend more on your next pastry order. You can not say I did not warn you.

The Pillsbury Dough-Boy, Wheat, And The Ukraine War Source link The Pillsbury Dough-Boy, Wheat, And The Ukraine War

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