Global: Grain prices are rising, between climatic and geopolitical risks Russian and Ukrainian sowings are falling behind

Published 2024년 10월 2일

Tridge summary

The grain market is currently facing a notable increase in prices due to several factors, including climate risks in key grain-producing areas such as Russia and the Southern Hemisphere, as well as geopolitical tensions in the Middle East. Wheat prices have climbed in both European and Chicago markets, influenced by lower-than-expected U.S. grain reserves and drought conditions in Russia. The situation is further complicated by investment fund activities and the threat of a dockers' strike in the U.S. Nevertheless, the primary concerns impacting grain supply and market dynamics are the ongoing drought and geopolitical tensions.

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

Original content

"The grain market has gone into overdrive," summarizes Sébastien Poncelet, a cereal analyst specializing in cereals at Argus Media France. On Wednesday, the bread cereal was trading at more than 230 euros per ton on the December deadline, the closest, a first in more than two months on the European market. On the Chicago Stock Exchange, Tuesday's surge propelled wheat beyond $6 per bushel (about 27 kg) for the first time since mid-June. Corn also climbed, to its highest level since the end of June. "Corn is helped by wheat, but for the most part, purchases are linked to the report" from the American Department of Agriculture (USDA) on stocks, explains Jack Scolville, of Price Futures Group. This quarterly report reported lower-than-expected American reserves of yellow grain, even if they remain up 29% compared to last year. Observers agree on the main causes of this sudden rise in grain prices: a cocktail of climate risks, from Australia to Russia, and rising tensions in the ...

Source: TerreNet