Reduced supplies of wheat and sunflower oil are likely to result in higher costs for American consumers.
"The expectation is that those Ukranian crops won't get planted this year and that the Russian crops will be embargoed, and so a lot of parts of the world will be in need of imports. And so there will be a mad scramble for the excess," Laura Reiley, a reporter at the Washington Post, told CBS News Mornings.
"We're already starting from a position of very high prices — we all know that from the grocery store," Reiley said. Consumers should expect price hikes"pretty much instantly because of the interconnectedness of some of these markets," Reiley said.American farmers also could see their costs rise because of war in Ukraine. The cost of fertilizer, which is already elevated, is expected to increase because of the rising cost of natural gas, a key component in the process to make nitrogen-based fertilizer.
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