As wheat prices soar, the world's consumers are forced to use less and replace it with cheaper alternatives

Published 2022년 8월 3일

Tridge summary

Record inflation is driving global wheat consumption towards its biggest annual decline in decades, with consumption expected to drop by 5%-8% from July-December due to high prices and the use of cheaper alternatives. This contraction, faster than the U.S. Department of Agriculture's forecast, is causing food security concerns, particularly in Asia and Africa. The situation is worsened by the invasion of Ukraine by Russia and adverse weather in key exporting countries, leading to cereal prices reaching all-time highs. The rise in wheat prices is also impacting animal feed demand and leading to the replacement of wheat with rice in countries like Indonesia. The Black Sea region, a significant wheat supplier, is experiencing disruptions, and there is skepticism about the return of Black Sea trade due to the ongoing conflict.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

SINGAPORE/JAKARTA (Aug 3): Global wheat consumption is headed for its biggest annual decline in decades as record inflation forces consumers and companies to use less and replace the grain with cheaper alternatives, amid growing food insecurity. Consumers may face even higher wheat prices in the second half of 2022 as importers, who until now have supplied cargoes bought several months earlier at cheaper prices, pass on the costs from when wheat prices scaled decade highs in May. Global wheat consumption in July-December could drop by 5%-8% from a year ago, analysts, traders and millers say, much faster than the U.S. Department of Agriculture's forecast 1% contraction. "There is going to be a drop in wheat demand for animal feed in Europe and China. Wheat demand for human consumption has also slowed in key importing countries around the world," said Erin Collier, an economist at UN's Food and Agriculture Organisation. "High prices have raised food security worries in parts of Asia ...

Source: Theedgemarkets