Stat of the Day – May 16, 2022

Outside of energy markets, one byproduct of the invasion of Ukraine has been the impact on food markets. Wheat is the most obvious one, but more overlooked is the disruption of sunflower oil exports. Ukraine is responsible for exporting over half of the world’s sunflower oil, which is used most often as frying oil. On the other side of the world, South America has experienced a drought spelling trouble for the world’s soybean oil supply. Combined this makes for a tight market for food makers trying to get their hands on the stuff. And these two products are used in more than you might think. From potato chips to cosmetics, to paints, when the price of this stuff nearly doubles in short time, it’s going to have (or already is having) a major impact on prices paid at the supermarket.

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