Russia will remain the largest supplier of wheat, despite the frosts

Published 2024년 5월 17일

Tridge summary

Russia's leadership in global wheat supplies is under threat due to adverse weather conditions, including frosts and drought, impacting the country's crop yields. The Ministry of Agriculture assures that Russia will have sufficient food, but the situation could lead to higher prices for wheat and other grains. The Chicago Mercantile Exchange has already noted a 3.54% increase in wheat futures to $6.6 per bushel, the highest since August 2023. The weather conditions have resulted in reduced harvest forecasts and increased costs for agricultural producers, with the Institute for Agricultural Market Studies lowering its wheat harvest forecast by 5 million tons. The article also mentions that the European part of Russia's adverse weather at the end of April and beginning of May could affect the harvest of winter grain crops and the development of corn in the southern part of the country.

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Original content

Bad weather in Russia was one of the reasons for the rise in world prices for wheat, writes Bloomberg. Experts are already reducing their harvest forecasts due to frosts in the center. But even taking into account the losses, the country will have more than enough food, the Ministry of Agriculture assures. And on the world market, Russia will remain the leader in wheat supplies. Wheat futures on May 10 immediately increased by 3.54%, to $6.6 per bushel (a little more than 27 kg), according to data from the Chicago Mercantile Exchange. This is the maximum since August 2023. One of the reasons is weather disasters in certain regions of the world, including Russia, Bloomberg points out. Half of winter wheat will remain too dry over the next two weeks, Commodity Weather Group estimates. In any case, Russia will reap a large harvest, but its dominance on the world market (about 25% in wheat) means that any fluctuations in the prices of Russian wheat (and it is becoming more expensive) ...

Source: Agrovesti