Wheat prices hit 13-year high in Korea

The import price of wheat has surged to 400 dollars per ton, for the first time in 13 years. The Russian invasion of Ukraine has driven up wheat prices, which has in turn increased inflationary pressure on restaurant prices.

According to the Korea Customs Service on Wednesday, the price of imported wheat hit 402 U.S. dollars per ton last month, up by 8.8 percent from the month earlier and the highest since December 2008. It is first since the end of 2008 that the wheat price has surged over 400 dollars per ton. The prolongation of the war in Ukraine, weakening won against dollar, and surging ocean freight charge have together influenced on the rise in the wheat price.

The global wheat future price is rapidly surging, as shown by the last month’s price of over 450 dollars per ton. The wheat futures price recorded 403.81 dollars per ton on Tuesday at the Chicago Board of Trade (CBOT), which is up by 68.5% compared to the year earlier. Russia and Ukraine together supply approximately 30% of the world’ wheat.

With the spike in wheat prices, the price of food that uses wheat as ingredients is also surging. According to the Korea Customer Agency, the price of kalguksu in Seoul increased to an average price of 8,115 won (per one serving), by 8.8% year-on-year. It is the first time since the price of kalguksu exceeded 8,000 won in 2014 when the relevant data has been first collected. The price of naengmyeon and jajangmyeon also increased by 9.7% and 9.4%, respectively, in the year.


Hee-Chang Park ramblas@donga.com