Hungary, one of Europe’s most grain-rich countries, is halting all grain exports effective immediately.
Just hours after Russia announced a ban on fertilizer exports, Hungary dropped a bomb on the world with this decision, which is expected to send already record-high wheat prices even higher.
This comes only a week after we warned that Ukraine And Russia Are Vital to Global Food Supply, Accounting for 25%+ of Global Wheat Trade. It’s time for the world leaders to drop their egos and negotiate peace before the crisis escalates into global famine or world war 3.
Zero Hedge is warning that the entire world should now expect wheat prices to double over the next few weeks as it becomes clearer what is actually happening to the global food supply.
“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,” its editors wrote.
Turkey, Egypt and Tunisia are almost entirely reliant on Russia and Ukraine for their wheat imports. It turns out that both Russia and Ukraine are also cutting off grain exports for the time being.
Some expect an Arab Spring-style food crisis to emerge in North Africa unless the Russia-Ukraine crisis gets resolved.
Since Russia’s counter-sanctions have cut off fertilizer to much of the world, there will likely be a food crisis everywhere, it is important to note.
“Worse still, natural gas is required in the manufacturing process for most nitrogen/fertilizer products … so the recent surge in European NatGas prices to record highs will only exacerbate the cost of fertilizer from any halt from Russia,” Zero Hedge further warned.
“And with wheat prices already at all-time highs, all hell is about to break loose not only among food producers, but soon in your local grocery store once U.S. consumers realize that food prices are about to double, triple and x-ple more.”
Is the global food system about to collapse?
This is a serious situation, to say the least. Many people, if not most, do not recognize how the globalization of everything has created an interdependence where if one piece falls out of place, the entire thing collapses.
A handful of Eastern European countries, along with Russia, supply much of the grain, energy and fertilizer that the rest of the world needs in order to survive. And this latest kerfuffle in Ukraine is essentially pulling the plug on the supply chain of all those things.
Since the entire world is now a Zenga tower, all it takes is a few blocks being pulled to take the whole thing down. Or if you are familiar with the house of cards concept, think Russia, Ukraine and Hungary as being among the lower cards that hold the whole thing up.
“Two years plague, then war, then famine,” wrote someone at Zero Hedge, the plague being the Wuhan coronavirus (COVID-19) plandemic and the war and famine being what we are now facing with the Russia-Ukraine debacle.
“It’s like they’re following some kind of script. Theater of war, theater of courts, theater of politics.”
“The script is the Bible,” responded someone else. “It tells you what comes next, and it ain’t pretty.”
For the true people of God, someone else responded to the second response, it is going to be glorious.
“Ever wonder how all those folks could be signing praises while lions were tearing them apart? There’s truth in that stuff when it’s allowed to take root.”
Another person simply quoted scripture from Romans 8: “For I reckon that the sufferings of this present time are not worthy to be compared with the glory which shall be revealed in us. There is therefore now no condemnation to them which are in Christ Jesus, who walk not after the flesh, but after the Spirit.”