Insane Week In 2 Charts

1. Wheat Prices Explode

Oil prices are more talked about but wheat prices exploded this week. Reaching highs that eclipse the great recession prices of Feb 2008, prices skyrocketed 50% in a single week as a result of the invasion by the largest wheat producer in the world Russia of the next highest wheat producer Ukraine. 

With so few wheat producers in the world, it is of great concern when 2 of the 5 are at war with each other. Russia and Ukraine account for roughly 30%of the world's wheat exports*

*Source: Tranding Economics

As a result of the invasion prices exploded this week and up 50% YTD

A conflict between the largest global suppliers is spreading fear that supplies will run short. Wheat prices have already been historically high due to drought conditions. Now such a dramatic increase in prices can create a supply shock resulting in food shortages amongst the poorer of wheat importers.

2. Crude Oil Prices

The conflict this week also sparked global supply crunch and tightening of prices even though sanctions have not officially hit the Russian oil industry. 

Prices this week reached 2008 recession levels.

In 3 days the price of Crude skyrocketed 23% holding prices elevated to close the week.

Gas prices followed suit this week especially in California where drivers have an abundance of taxes on top of already high prices.

US Avg gasoline prices are now at peak levels during the worst of the 2008 recession