Farmers have drastically scaled back their wheat crops this year in a trend that threatens to worsen the country’s cost-of-living crisis after soaring fuel and fertiliser prices from the Iran war and dry weather prompts growers to rethink the food staple.
The three-month conflict in the Middle East and the closure of the Strait of Hormuz has already triggered a massive shake-up in global agriculture and sent commodity markets into a spin. Rabobank is now forecasting oil prices could spike to an average of $US120 a barrel in the coming months up from about $US70 before the conflict.
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