U.S. Breadmakers Fear Soaring Costs as Turmoil Engulfs Wheat Trade

U.S. bakeries, many of which are passing on higher costs to customers, are anxiously watching the price of world wheat soar as Russia’s invasion of Ukraine adds to supply chain shakeups for the staple food.

After nearly two years of pandemic-related disruptions, war between the two agricultural powerhouses is ratcheting up fears of ripple effects beyond Europe. The threat of halts to Black Sea trade, which includes millions of barrels of oil a day and about a quarter of the world’s grain exports, has sent grain and edible oil prices surging and could also wreak havoc on energy and fertilizer markets around the globe. That’s raising the specter of higher food production costs and, in turn, bigger grocery bills at a time when global hunger emergencies are on the rise.