Global: Flour millers face supply crunch as wheat farmers tighten grip on stocks

Published 2024년 11월 21일

Tridge summary

Wheat suppliers in major exporting countries are withholding their crops due to low prices, leading to a decrease in the supply available to flour makers. This could result in an increase in prices if there is a production shortfall, at a time when global reserves are already projected to reach a nine-year low. The situation is further complicated by high interest rates, which prevent millers from stockpiling wheat. As a result, global wheat stockpiles are expected to drop to a nine-year low by mid-next year, and Russia, a top wheat exporter, may run out of supplies.

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

Original content

SINGAPORE/CHICAGO?CANBERRA (Nov 21): Wheat growers in several exporting countries are reluctant to sell their crops with prices near four-year lows, traders, farmers and millers say, leaving flour makers with dwindling supplies and vulnerable to any potential upswing in prices. Typically grain processors buy wheat three- to four months in advance. But millers in Asia, including Indonesia, the world's No. 2 wheat importer, are currently covered for about two months, and in the Middle East, most grain processors only have up to 45 days of supplies, two millers and a trader said. The limited supply held by flour makers reduces their buffer against any production shortfalls that would trigger a rally in world prices, with global reserves already projected to reach a nine-year low, and fuel food inflation. Farmers are hoarding their crop as global wheat prices have slumped to their lowest since 2020, on solid output in Australia and Argentina, and on improved growing conditions in ...

Source: Theedgemarkets