Wheat is the world's most important food grain, providing ~20% of calories consumed globally. It is the primary ingredient in bread, pasta, and many processed foods.

Why It Matters

Wheat is a food security issue for many nations. Price spikes directly affect bread prices in developing countries and have historically contributed to social unrest (e.g., Arab Spring). Russia, the EU, U.S., Canada, and Australia are major exporters.

Geopolitical Sensitivity

The Russia-Ukraine conflict highlighted wheat's geopolitical importance—Ukraine and Russia together account for ~30% of global wheat exports. Disruptions to Black Sea shipping caused global wheat price spikes.

Market Impact

Wheat prices directly affect global food inflation and food security. High wheat prices disproportionately impact low-income countries dependent on wheat imports.