Baltic Dry IndexThe BDI or Baltic Dry Index - measures the cost of shipping goods worldwide.
For 2022 - the BDI is down -34.14%.
Ukraine was a large disruption for Grains - Barley, Corn, and Wheat.
Factually had material impact.
The index's value is generated by the demand for the raw materials
and the supply of ships available to transport them.
There is absolutely no shortage of Ships.
Rather the Demand for Products is vastly reduced as Prices began to
move far higher.
768,300 metric tons of Ukrainian grain were exported by Rail in early May.
The trend towards overland has increased markedly.
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Overwhelming Price increases have dampened demand from Egypt to India as
prices for Staples were extreme.
Egypt is typically the world's largest wheat importer, buying more than 60%
of its wheat from abroad, with Russia and Ukraine accounting for about 80%
of government and private sector imports last year.
106M people live within Egypt's borders. 67 MIllion of them receive Bread Subsidies.
Ripe for further disruptions to Supply and a repeat of the prior "Bread Riots" of
1977 when Sh_t went South in a very big hurry.
Protests against the austerity measures in Cairo were far different then, Bread is
symbolic.
Contrast this with today's environment and we will see how the forced austerity
becomes a hunger chant for the Ages.
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Egypt is merely One of the Dozens of Countries that are facing Food Austerity.
From Plentiful to barren, don' t believe it can't happen here, it can and will.
