Disruptions and price fluctuations aplenty in global wheat trade amid Covid19 outbreak

With export limitations placed on wheat in Russia due to Covid19 outbreak, the country will only export 7,000 kmt of wheat until the end of June and the exports will only be sold to the countries within the Eurasian Economic Union. Russia was the biggest wheat exporter with an export volume between 35,000 and 40,000 kmt annually.

Consequently, wheat prices went up in the market with Algeria and Turkey importing wheat at 8% and 10% higher prices in the last 2 weeks. Wheat price increased from 170 USD to 193 USD per ton in the last 30 days.

Food and Agriculture Organization expects annual global wheat production to be 3% higher than the last 5 year's production average.