[HN Gopher] The Price of Wheat
       ___________________________________________________________________
        
       The Price of Wheat
        
       Author : baremetal
       Score  : 86 points
       Date   : 2022-03-05 15:51 UTC (7 hours ago)
        
 (HTM) web link (tradingeconomics.com)
 (TXT) w3m dump (tradingeconomics.com)
        
       | giantg2 wrote:
       | I guess it's good I bought 5 pounds of wheat seeds earlier this
       | year. Now to grow it, malt it, brew it.
        
       | h2odragon wrote:
       | I dunno what kind of wheat they grow in Ukraine; specifically
       | when do they plant and harvest? I've got the impression that
       | planting season is a couple weeks to a month off and closes a
       | couple weeks after that, for a late fall harvest.
       | 
       | In the southern USA there's more winter wheat in the fields than
       | I've seen in the 30 years I've lived here. It looks _really
       | happy_ so far too. They 'll be bringing that in starting in
       | another 3mo or so.
        
         | ed25519FUUU wrote:
         | You probably know this already but the hard winter wheat and
         | soft white spring wheat are used to make different types of
         | food. I imagine in the US food manufacturers will start trying
         | to swap for hard winter wheat which it sounds like we'll have a
         | lot of.
         | 
         | But you're right about planting season. It's coming up fast and
         | that window will close with no way to rewind if tensions die
         | down.
        
         | downrightmike wrote:
         | It isn't so much production as transport. We may have a lot of
         | wheat, but getting it shipped is way more expensive and ship
         | into long beach are only on time about 10% of the time, pre
         | covid, they were 90% on time. And it is a lot easier to get
         | goods into smaller towns and farms etc, than it will be to pick
         | up a bunch of shipments from rural areas.
        
           | derbOac wrote:
           | This is related to something on my mind since I read about
           | the impact of the Ukraine conflict on wheat: will the
           | economic impacts of wheat deficits be equally spread
           | worldwide?
           | 
           | I wondered about it because I am lucky I suppose to live in
           | an area with a fair amount of local wheat production. During
           | the pandemic I noticed that the locally produced wheat never
           | really disappeared even though it was more expensive to begin
           | with; the bigger brands totally disappeared from the shelves.
           | 
           | I could see this as making a bigger impact though, because
           | it's affecting worldwide stock to a bigger extent, at the
           | more basic level of production rather than supply chains per
           | se. But if the local wheat isn't really going anywhere
           | anyway, maybe it doesn't matter.
           | 
           | Between this and the pandemic it seems like smaller, local
           | production is being rewarded more, at least where I am.
           | Chains struggled but smaller local shops thrived.
        
       | qalmakka wrote:
       | Luckily, I prefer rice to bread /s
       | 
       | Jokes aside, I honestly think that the modern Western diet would
       | benefit a lot from some diversification on what cereals we eat.
       | We eat way too much wheat nowadays. For instance, I like in Italy
       | and we import most of our wheat, while we produce large amounts
       | of rice, exporting more than 50% of it. People in Northern Italy
       | have always eaten bread, but they ate way less pasta and way more
       | rice and cornmeal in the past. Since the 1950s pasta has become
       | incredibly ubiquitous and people have lost knowledge and the
       | taste for rice dishes - lots of boomers I know don't even have
       | rice in their homes.
        
       | riedel wrote:
       | This page has a pricing page [1] without prices. How I hate such
       | things.
       | 
       | [1] https://tradingeconomics.com/analytics/pricing.aspx
        
         | FredPret wrote:
         | You mean you _don 't_ like to contact Sales to "learn more"?!
        
       | hamiltonians wrote:
       | wont take much for this to fall again.increase prices means
       | increased supply
        
         | ed25519FUUU wrote:
         | Ukraine is one of the world's bread baskets and produces
         | roughly 12% of supply. If they miss the planting season because
         | of war it's going to have a long lasting effect, and you can't
         | plant again until next spring.
        
           | jelliclesfarm wrote:
           | they have to plant within the next 30-60 days. the planting
           | window is fast approaching. i think they will miss it.
        
         | khuey wrote:
         | Yeah that's not how commodities with fixed production cycles
         | work in the short term.
        
         | BoiledCabbage wrote:
         | > wont take much for this to fall again
         | 
         | Yes it will, as crops have a growing season. If it gets missed
         | there is simply less wheat for everyone in the world for
         | roughly a full year until the following growing season.
        
         | hugh-avherald wrote:
         | Why hasn't supply increased already?
        
         | futhey wrote:
         | If futures markets do their job, and incentivize other growers
         | to expand their production ahead of planting season, it might
         | partially resolve itself. Not my area of expertise though. Are
         | their North American farmers holding out waiting for better
         | prices?
        
       | onecommentman wrote:
       | A worthwhile resource on the topic, Ohio State Ag Economists
       | discuss (important to US ag industries for obvious reasons)...
       | 
       | https://ocj.com/2022/03/ukraine-russia-and-crop-production/
       | 
       | Agricultural economists as a discipline deal with these and other
       | policy/trade issues all the time. At agricultural colleges and
       | universities, they provide farmers with insights so the right
       | crops are grown in the right time and place at the right level.
       | No political or financial agenda worthy of note. If you're in the
       | US and care enough, you might want to contact your local land
       | grant school and talk to an ag economist who specializes in grain
       | production about these concerns, or sponsor an on-line forum with
       | them for others who are interested.
       | 
       | If I remember correctly, most wheat in Ukraine/Russia is/has been
       | planted in the fall/winter for summer harvest. But active
       | regional conflict right next to your breadbasket generally sounds
       | like a dumb and dangerous idea to pursue. You can't harvest if
       | your harvesting equipment is disabled. You can't get the grain to
       | market if your transportation systems are disrupted. Seems silly.
       | Slavs may need to gen up some culturally appropriate recipes
       | using maize and soybeans.
        
       | Borrible wrote:
       | https://www.wsj.com/market-data/quotes/futures/W00/advanced-...
       | 
       | Filter to 'All'
       | 
       | Those tops between 2010 and 2013 is the 'Arab Spring'.
       | 
       | Now you know what is coming.
       | 
       | I mentioned that eight days ago, it was a sure thing ten days
       | ago. The moment they crossed the border.
       | 
       | https://news.ycombinator.com/item?id=30457490&goto=item%3Fid...
       | 
       | Oh, and it was talked about for months. It's that Ukraine
       | Breadbasket thing.
       | 
       | We Germans had a tour back then, just for that. It's not widely
       | known, but we sometimes even stole the pure soil literally,
       | Chernozem.
       | 
       | History and geostrategics, quite interesting.
       | 
       | Uh, by the way, the Ukrainians had a land reform last year.
       | 
       | As a primer:
       | 
       | https://www.oaklandinstitute.org/blog/who-really-benefits-cr...
       | 
       | ----------------------------------------------------------
       | 
       | And now to something completely different, the Serbians and the
       | Balkan...
        
         | beebeepka wrote:
         | What about the Balkans? We don't need another war, thanks.
         | 
         | I don't know for sure who is funding all these "nationalistic"
         | organisations around these parts but I do know nationalism is
         | more often than not used as a tool to divide people, not unite
         | them.
         | 
         | These people seem to "care" and "love" their countries to the
         | extent of beating and harassing brown people. Sorry, got
         | carried away
        
           | baq wrote:
           | There are reports something's brewing in Serbia/Kosovo, more
           | than usual. Same in Moldova/Transnistria - the latter in
           | particular could provide a western angle of attack on
           | Ukraine.
        
           | Borrible wrote:
           | >We don't need another war, thanks.
           | 
           | Some people think it's the best. At the moment the strongest
           | proponents of this line of thought sit in the Kreml. It's
           | just a question of who it's best for. And they don't care if
           | you want it or not.
           | 
           | The Republika Srpska cultivates close ties to their Russian
           | brother, nurtures strong ethnic/nationalist ambitions and is
           | a possible attack vector for Russian PsyOps to stirr things
           | up. Don't you think a possible Civil War or some such in the
           | Federation of Bosnia and Herzegovina would come in handy? For
           | Russia and the Republika Srpska?
           | 
           | Oh, and please don't shoot the messenger, I'm just looking
           | for an exit.
           | 
           | By, the way that Balkan thing is much older. In 1888 Bismarck
           | is quoted as saying "One day the great European War will come
           | out of some damned foolish thing in the Balkans."
           | 
           | He was right.
        
           | agumonkey wrote:
           | I don't know how solid this piece (or the team behind it) is
           | https://bywire.news/articles/millions-of-russian-roubles-
           | fun...
           | 
           | But it hints at that there is potential for groups and/or
           | nations (I assume Russia wouldn't be the only one) to mess up
           | peoples minds.
           | 
           | Not long ago a journalist ended up in the "internet
           | communication team" of a french presidential candidate
           | (Zemmour) and saw how much shitty tricks they're trying to
           | influence people (editing wikipedia, flooding articles online
           | to give a better image)
        
         | [deleted]
        
       | protomyth wrote:
       | Might not be a bad idea to monitor
       | https://www.ers.usda.gov/publications/#!topicid=&subtopicid=...
       | WHS: Wheat Outlook. Also, the February report
       | https://www.ers.usda.gov/publications/pub-details/?pubid=103...
       | has a section on Russia.
        
       | PestoDiRucola wrote:
       | We might have reached the highest price of wheat in history. A
       | lot of historical things happening as of late.
        
         | pfdietz wrote:
         | This is a great time to be on a low carb diet.
        
           | slothtrop wrote:
           | Everything is more expensive, wheat is probably among the
           | cheapest staple items. Meat prices are already higher, fruit
           | and vegetable prices will get there
        
           | immibis wrote:
           | What do you think the low carbs eat?
        
             | tbirdny wrote:
             | Grass
        
             | LinuxBender wrote:
             | The vegans/vegetarians eat vegetables. The low carbohydrate
             | omnivores on Paleo and/or Healthy Keto eat a mix of
             | vegetables and meats. Those on carnivore diets eat mostly
             | non gmo grass fed meats from what I have seen.
        
             | pfdietz wrote:
             | Not wheat, typically.
        
           | base698 wrote:
           | Beef is up too.
        
             | giantg2 wrote:
             | Not so much if you buy it direct and avoid the
             | store/middlemen markups.
        
             | dan1234 wrote:
             | Great time to be on a plant based gluten free diet!
        
               | giantg2 wrote:
               | Fertilizer costs are skyrocketing, and Russia is saying
               | not to export to western nations now too.
        
               | ragingrobot wrote:
               | Everything's on the up.
               | 
               | I'm an omnivore, and use tofu for meals on occasion. On
               | my trip to the Asian market yesterday (cheapest price
               | around), tofu was 50% higher than what I paid last trip
               | two or three months ago (was $1.39 for House Foods 10oz -
               | a common brand around here, now $1.99). Nothing's safe.
        
             | bryanlarsen wrote:
             | Beef is often counter-cyclical with grain prices, so I
             | wouldn't be surprised to see it drop. When the price of
             | feed goes up, cattlemen sell cattle depressing its price.
             | When the price of feed goes down, cattlemen expand their
             | herds, temporarily decreasing the number of cattle for
             | sale.
        
         | rruark wrote:
         | We may be seeing the highest nominal price for wheat in US
         | history, but we are nowhere near the highest inflation adjusted
         | price. The price of wheat in 1866 was $2.06/bu [0]. That is
         | $36.43/bu in 2022 prices.
         | 
         | In times of famine, prices have of course been higher. Just for
         | fun, the rider of the black horse in the book of revelations
         | prices a quart of wheat at one denarius (a typical days wage at
         | the time). If you go by the 4.4g silver content of the coin,
         | that comes out to $3.64 per quart or $135/bu.
         | 
         | [0] https://www.ers.usda.gov/data-products/wheat-data/
        
         | Shadonototra wrote:
         | Dark days ahead of us.. money won't be enough if everyone is
         | fighting for the same resources.. then we'll have water issues
         | very soon, things are changing at a very fast pace, it's scary
        
           | 7373737373 wrote:
           | I don't get how and why water could ever be an existential
           | problem for humanity, other than in extremely remote drought
           | regions. Yes, desalination plants and other infrastructure
           | investments may make it more expensive, but it doesn't seem
           | to be a fundamentally scarce resource.
        
             | calvinmorrison wrote:
             | at .01 cents a gallon or less, yeah it's not scarce at
             | all...
        
             | bcrosby95 wrote:
             | You can use desalination for drinking water, but growing
             | food requires way too much water for it to be feasible.
        
               | pfdietz wrote:
               | In Israel, use of desalination made more effluent
               | suitable for irrigation. Before that, the effluent
               | contained too much salt.
               | 
               | This isn't desalinating specifically for irrigation, but
               | it is a source of water for irrigation that wouldn't
               | exist without desalination.
               | 
               | https://www.haaretz.com/israel-news/.premium-study-water-
               | des...
               | 
               | Israel is not self-sufficient though; they import 80% of
               | the grain they consume.
        
             | jeffbee wrote:
             | Literally billions of people rely on glacial meltwater
             | which will eventually run out. Yes it is technologically
             | feasible to provide the whole world with desalinated water,
             | but it is also technologically feasible to provide the
             | whole world with renewable energy and for some reason we
             | haven't done that either.
        
             | adam_arthur wrote:
             | Also pipelines are already proven via oil and natural gas.
             | You can transport oil from remote areas in Canada to
             | western Texas with little effort.
             | 
             | Very trivial to extend the idea to routing water from any
             | of the thousands of lakes in Canada.
             | 
             | Vegas had a plan to do just that (though from Reno). These
             | ideas aren't pursued because water is not scarce enough for
             | them to be economically justified yet. If the time comes,
             | they will do it and likely cheaper than you think.
             | 
             | If renewables eventually take over, we can even repurpose
             | the existing oil pipelines. Likely need to widen them, but
             | much cheaper than land use/zoning legal battles.
        
               | arbitrary_name wrote:
               | Not trivial at all. It's billions of dollars, huge
               | amounts of energy to pump water up and down mountain
               | ranges, many years of construction, many more years of
               | litigation... And why on earth would Canada give us their
               | water?
               | 
               | There was a plan to pipe water to California from the
               | Pacific north west, and the projected costs for that were
               | insane.
               | 
               | By the time the high price of water justifies projects on
               | this scale, there will be blood in the streets, not water
               | in aqueducts.
        
               | adam_arthur wrote:
               | Billions is peanuts vs abandoning trillions of dollars of
               | real estate and uprooting millions of people's lives.
               | 
               | Sorry, doomsday abandonment scenario is a complete
               | fantasy, void of any logic.
               | 
               | People talk about colonizing Mars, yet suggest we can't
               | pump water from point A to B
        
               | Retric wrote:
               | Billions of dollars isn't actually that expensive for
               | governments. Such projects are only considered expensive
               | because water is not currently a problem.
        
               | FredPret wrote:
               | These problems will tend to evaporate when water starts
               | running low enough to impact people's daily lives.
               | 
               | Civilization adapts quickly once somebody pokes the bear.
        
               | 7373737373 wrote:
               | I would love to see a historical survey of what
               | circumstances and processes made large scale projects
               | like these happen
        
               | HPsquared wrote:
               | Most shortages of water are caused by an inability to
               | build and maintain infrastructure, not an inherent
               | scarcity of water.
        
               | nostrademons wrote:
               | An inability to build & maintain infrastructure is a
               | common feature of times of scarcity. It's hard to
               | organize people toward a common goal when there's an
               | imminent threat to survival.
               | 
               | Sure, in theory there's plenty of water on the globe, and
               | it's just a matter of getting it to population centers.
               | In theory all we have to do to avert global warming in
               | the first place is reduce our CO2 emissions. In practice
               | both of those goals are essentially impossible, because
               | it's a coordination problem and coordination problems are
               | significantly harder than technological and economic
               | problems.
        
             | phatfish wrote:
             | Clean water in the right location can certainly be scarce.
             | If a large population is close to the limit and unusual
             | weather or some other event causes a shortage, I'm not sure
             | how long a quick fix like trucking it in would be
             | sustainable.
        
             | nostrademons wrote:
             | It's not an existential problem for humanity, but it could
             | be an existential problem for individual humans.
             | 
             | Settlement patterns grow up water availability. There's a
             | reason India and eastern China are densely populated while
             | the Sahara has virtually nobody. The U.S. Southwest (LA,
             | Vegas, Phoenix, and smaller cities in SoCal/AZ/UT/NV/NM)
             | urbanized when we developed the technology to dam & control
             | the Colorado River.
             | 
             | In 100 years, it's likely they'll be thriving communities
             | in the Sahara, Canadian Shield, Siberia, etc. to make up
             | for the increasing inhabitability of Northern Europe, the
             | U.S. South & Southwest, Indian subcontinent, Middle East,
             | etc. But _that 's cold comfort for the people who already
             | live in the affected regions_, who will have to migrate,
             | die, or spend most of their resources on water
             | infrastructure.
        
             | DyslexicAtheist wrote:
             | there is a whole Wikipedia entry dedicated to the topic:
             | https://en.wikipedia.org/wiki/Water_scarcity
        
       | leke wrote:
       | So we need to make up 30% of grain in the world. Surely 30
       | countries can produce 1% more grain than they usually do to make
       | up the deficit.
        
         | athinggoingon wrote:
         | The problem is that Russia and Ukraine make up significant
         | amounts of nitrogen fertilizer production.
        
         | ggus wrote:
         | Percent math doesn't work that way. Every country should
         | produce an additional 1% of the whole world total. Very
         | different from 1% of what they usually do, which is a fragment
         | of the total.
        
         | sulZ wrote:
         | They'd need to produce 1% more grain as compared to the world's
         | output, not their own output. This could be a significant
         | increase.
        
         | freemint wrote:
         | That's not how math works. They wouldn't need to produce 1%
         | more 30 countires would need to produce 1% of world production
         | in addition to their current produce. In other words the
         | countries producing the other 70% each would need to 42+% more
         | to make up the missing 30%.
        
       | sremani wrote:
       | plague. war. famine.
       | 
       | welcome to end of 'end of history.'
        
         | marginalia_nu wrote:
         | More like 'welcome to history'. There have always been periods
         | of peace and prosperity, sometimes hundreds of years long.
         | Those living through these have always thought they were the
         | exception. They have always been wrong.
        
           | gboss wrote:
           | The OP I'm pretty sure is being sarcastic and referring to
           | this obnoxious book by Francis Fukuyama:
           | https://en.m.wikipedia.org/wiki/End_of_history
           | 
           | He had this absurd premise that because the Soviet Union
           | collapsed and free trade was surging every place everywhere
           | would coalesce to a boring democracy.
        
             | DyslexicAtheist wrote:
             | they did say "the end of 'end of history'" so maybe there
             | is more to untangle than the postmodern idea of what
             | Fukuyama was having his night-terrors about. I fear it's
             | even more "meta" and also a reference to this old Churchill
             | quote about war:
             | 
             | > _" Now this is not the end of end of history. It is not
             | even the beginning of the end of end of history. But it is,
             | perhaps, the end of the end of the beginning."_
        
         | TheGigaChad wrote:
        
         | sAbakumoff wrote:
         | Exactly!
         | 
         | Covid-19 was the first one, it was literally "given a crown".
         | 
         | The last one to be nuclear winter.
        
           | DyslexicAtheist wrote:
           | there is a lot of fear mongering about nuclear holocaust wrt
           | NATO joining the war etc., but this is incredibly far fetched
           | even in a worst case scenario[1]. I don't say the nuclear
           | threat is nil, but it's also not as bad as war-hawks
           | pondering escalation scenarios or the media makes it out to
           | be.
           | 
           | What do you think would happen to Putins daughters in London,
           | to the family members of oligarchs, to anyone who carries the
           | smell (shame) of a past support of that regime. Even enemies
           | of the West will think twice and have no choice supporting
           | the force that is stronger. (whether that's good or bad or if
           | they like it or not)
           | 
           | anyway nobody knows anything about any of this even the ones
           | who are supposed to be experts in it. so certainly don't take
           | my word for it but do question it when they make it clean
           | cut.
           | 
           | [1] assume RU does launch nukes without sabotage on their
           | systems before, and 1 or 2 cities will be lost to nuclear
           | holocaust. There will be immediate containment of many of the
           | missiles not fulfilling their objective. This is a lot
           | messier than the academic idea of a neat escalation scenario
           | that ends in total annihilation of the human race including a
           | nuclear winter.
        
             | sAbakumoff wrote:
             | >> What do you think would happen to Putins daughters in
             | London,
             | 
             | I think he does not give a fig about anyone anymore
        
       | alephnan wrote:
       | How much of this is attributable to meme stock style momentum
       | versus fundamentals?
        
         | tyrfing wrote:
         | It's a number of factors coming together. The market over 2021
         | was very tight, with China importing a huge amount of wheat,
         | some drought/weather issues, and probably more. Coming into
         | this year, nitrogen fertilizer, potash and other agriculture
         | inputs are very expensive, which partly traces back to energy
         | costs (natural gas) and sanctions (Belarus/Russia). Adding the
         | Ukraine war to this puts a huge percent of global exports at
         | risk, with at least some people naming it as the biggest supply
         | shock in a lifetime:
         | https://twitter.com/ScottIrwinUI/status/1499137998386085889
         | 
         | It's not just the supply shock, but everyone expecting rough
         | conditions this year _before_ the war started. Primed with
         | those conditions and a commodity where not having any means
         | millions /billions of people starve, it's easy to see how
         | supply concerns can set off some very sharp movements. Energy
         | and food inflation like this has a history of setting off
         | events like the Arab Spring; it's a very inelastic market and
         | governments don't have the option of not paying.
         | 
         | I'm no commodities expert though.
         | 
         | Here's an article on effects in Egypt:
         | https://mei.edu/publications/russia-ukraine-war-has-turned-e...
        
         | teej wrote:
         | It's clearly a supply shock.
        
         | adam_arthur wrote:
         | Commodity speculators can push prices up for sure.
         | 
         | But they are also huge markets where most buyer/sellers
         | actually intend to use the product. On top of that, global
         | inflation was already pushing up price of most commodities
         | (excess goods spending due to govt stimulus, among other
         | things, such as substitution).
         | 
         | Oil is a much more dire situation, as demand is increasing
         | faster than structural supply. Higher oil does push people
         | towards renewables, but at large cost to the poor. Also acts as
         | multiplier to pretty much all other goods production.
        
         | tenpies wrote:
         | Probably zero.
         | 
         | The WSB-types generally do not touch futures contract because
         | the margin requirements can be quite high (a single contract is
         | generally tens of thousands of dollars).
         | 
         | Much of this is also fundamentals. ESG = energy stops growing
         | and as the West continued down its self-destructive energy
         | policies, an energy crisis was basically guaranteed. Recall
         | that energy prices in Europe were at all time highs already.
         | The US has largely been saved thanks to the previous POTUS who
         | prioritized energy independence. Even if the current US
         | Administration threw that away, they haven't been in power long
         | enough to completely sabotage their own energy production.
         | 
         | Where it is now a supply crunch is in agriculture. You have one
         | of the largest producers of wheat, fertilizer components, and a
         | couple of other things; invading another of the largest
         | producers of wheat, fertilizer components, and a couple of
         | other things.
         | 
         | Add to this a backdrop of woke politics and cancel culture
         | spreading into diplomacy and you have the West self-destructing
         | itself over what would - in normal times - be a regional issue
         | at best.
         | 
         | TL:DR we're in trouble. And that's before even talking about
         | how the West has weaponized finance and now fundamentally
         | changed the rules by which globalization worked. That's going
         | to have some really nefarious effects a la 2008 GFC, but much
         | worst.
        
       | Jerry2 wrote:
       | Given the dire situation and prospects for the future, doubling
       | of the wheat prices is completely rational. Some countries are
       | now also imposing export bans. [1] That won't stop price
       | increases but at least they'll still have wheat and will be able
       | to use it. Another crisis to keep an eye on is the global
       | fertilizer shortage [2]. Near future looks pretty bleak.
       | 
       | [1] https://uk.finance.yahoo.com/news/hungary-ban-grain-
       | exports-...
       | 
       | [2] https://www.wthitv.com/news/global-nitrogen-fertilizer-
       | short...
        
       | Azsy wrote:
       | Wheat is not the only problem, fertilizer prices are also
       | disrupted and it might get worse.
       | 
       | Next to the deaths in Ukraine, we might thank Putin for 100
       | million plus deaths by famine within the 3 years.
        
         | warner_of_doom wrote:
         | We could simply not sanction agriculture-related exports. That
         | would be moral, IMO.
        
           | giantg2 wrote:
           | It's not the sanctions directly. Putin is retaliating by
           | instructing that fertilizer not be exported to the west.
        
             | warner_of_doom wrote:
             | We need to start negotiating on that right now. We need to
             | open up negotiations on this point immediately. Arab Spring
             | x 10k is about to hit the entire world, and the result will
             | be 10k times as nasty.
        
           | Azsy wrote:
           | We are well past sanction stories and moved into national
           | security by banning export:
           | https://tradingeconomics.com/china/exports-of-fertilizers
           | 
           | The only real solution i see is to stop feeding the animals
           | with stuff humans could eat and make a point of global
           | solidarity. I say this as a avid meat eater, but I'm not
           | holding my breath.
        
             | warner_of_doom wrote:
             | Why is the media here in the US not reporting on the fact
             | that grain prices are going to quadruple if sanctions on
             | agricultural products and inputs are not lifted?
             | 
             | Do they want to see the whole world destabilized by a
             | famine?
             | 
             | This is ridiculous.
        
               | giantg2 wrote:
               | The restrictions aren't necessarily on the import side.
               | Even if they are, it's irrelevant since Putin has placed
               | restrictions on the _export side_.
        
               | warner_of_doom wrote:
               | We need to open up negotiations on this point
               | immediately. Arab Spring x 10k is about to hit the entire
               | world, and the result will be 10k times as nasty.
        
       | ck2 wrote:
       | Even if Putin was somehow deposed tomorrow and somehow the
       | invasion ended, that curve is not coming back down any time soon.
       | 
       | Kind of like gas prices during/after invasion of Iraq? Despite
       | local production availability, it was an opportunistic hike.
       | 
       | What's weird though is I noticed a price spike and then sudden
       | unavailability of many wheat products just after New Years.
        
         | mynameishere wrote:
         | Right after a news story about Putin getting deposed will be a
         | news story about the Baltics being invaded. So, careful about
         | what you wish for.
        
         | umanwizard wrote:
         | > Even if Putin was somehow deposed tomorrow and somehow the
         | invasion ended, that curve is not coming back down any time
         | soon.
         | 
         | Why not? If everything normalized tomorrow, what would stop
         | Russia and Ukraine from resuming wheat shipments?
        
           | DiabloD3 wrote:
           | Technically, nothing. If you ended up with a 100% pro-
           | Ukranian Russian government, they could immediately cease
           | fire, and begin talks with the entire world on resuming
           | commerce.
           | 
           | They may have to invent a new currency, but this would be
           | what, the fourth Russian currency in modern times? Nothing
           | new.
        
             | thriftwy wrote:
             | An interesting plan. What if Russians don't agree?
        
               | DiabloD3 wrote:
               | I see no reason why the Russian people won't agree, they
               | almost universally despise Putin, especially after just
               | sending a bunch of kids to die on the front lines with no
               | supplies or plan.
               | 
               | The only people who worship Putin are a vocal, dangerous,
               | and violent minority that are about to find themselves
               | persona non grata in their own homeland.
        
           | ed25519FUUU wrote:
           | Who is to say Putin isn't deposed by somebody even more
           | ruthless than himself?
        
             | umanwizard wrote:
             | We are talking about the hypothesis that the invasion ends
             | and relations are normalized.
        
           | [deleted]
        
           | thesuperbigfrog wrote:
           | >> If everything normalized tomorrow, what would stop Russia
           | and Ukraine from resuming wheat shipments?
           | 
           | The effects of war are not magically undone when the war
           | ends.
           | 
           | If the war ended today, it would take Ukraine decades to
           | recover. Pictures like these do not show the people whose
           | lives have been shattered or lost:
           | 
           | https://news.sky.com/story/ukraine-invasion-before-and-
           | after...
           | 
           | Similarly, the sanctions on Russia are only a symbol of the
           | loss of trust and willingness to cooperate that many people
           | throughout the world feel. How many years or decades will it
           | take to build back that trust?
        
             | Aperocky wrote:
             | wheat does not need trust, it is not a fiat currency.
        
               | thesuperbigfrog wrote:
               | >> wheat does not need trust, it is not a fiat currency.
               | 
               | As I said above, when given the choice many people choose
               | not to do business with murderous criminal thugs.
               | 
               | If someone killed your family members or friends would
               | you buy grain from them? Or would you pay more and buy
               | grain from someone else?
        
             | umanwizard wrote:
             | Your picture is not of a destroyed wheat field, so what is
             | your point?
             | 
             | Everything in the linked story claims that wheat shortages
             | are due to short-term disruption, not productive capacity
             | having been destroyed.
             | 
             | > How many years or decades will it take to build back that
             | trust?
             | 
             | That's irrelevant to the discussion. You don't need to
             | trust someone in order to buy wheat from them. The actual
             | sanctions are what matter, not whatever they "symbolize".
             | And there's no reason to believe the sanctions would last
             | for years or decades if Putin were deposed and Russia's
             | aggressive actions stopped.
        
               | thesuperbigfrog wrote:
               | >> Your picture is not of a destroyed wheat field, so
               | what is your point? Everything in the linked story claims
               | that wheat shortages are due to short-term disruption,
               | not productive capacity having been destroyed.
               | 
               | Wheat fields don't harvest themselves. Wheat can't drive
               | itself to ports and load itself on ships. It requires
               | people and infrastructure. The war has disrupted those
               | people and the country's infrastructure. It does not
               | magically return when the war ends.
               | 
               | >> You don't need to trust someone in order to buy wheat
               | from them.
               | 
               | Yes, but when given the choice many people choose not to
               | do business with murderous criminal thugs. If someone
               | killed your family members or friends would you buy grain
               | from them? Or would you pay more and buy grain from
               | someone else?
               | 
               | >> And there's no reason to believe the sanctions would
               | last for years or decades if Putin were deposed and
               | Russia's aggressive actions stopped.
               | 
               | Who knows? That has not happened yet.
        
       | fidesomnes wrote:
        
       | daxfohl wrote:
       | I guess I'll never hear the end of my parents saying it's all
       | Bill Gates and the WEF's plan to kill us all.
        
       | NoMoreBro wrote:
       | This reminds me of "The Death of Grass", a really interesting
       | (and now scaring) post-apocalyptic science fiction novel (1959)
       | 
       | https://en.m.wikipedia.org/wiki/The_Death_of_Grass
        
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