Bloomberg writer Yvonne Yue Li reported yesterday that, “Farmers are still making money despite the higher costs for fuel and fertilizer, as crop prices have risen even more. “That’s the view of Federal Reserve Bank of Kansas City researchers, who see Russia’s invasion of Ukraine have ‘long-lasting‘ effects on the commodity markets.
‘Disruptions associated with the invasion have contributed to increases in commodity prices, which could support commodity-producing regions and businesses,’ they said Monday in a report. “Russia and Ukraine are key producers and exporters of energy and agricultural products, such as natural gas, wheat, and fertilizer. Prices of those raw materials have surged since Russia’s invasion of Ukraine and sanctions that followed disrupted production and flows of commodities.”