Harsh weather curbs global wheat production, elevates prices

Published Oct 14, 2024

Tridge summary

Harsh weather conditions and Russian attacks on grain ships in the Black Sea are reducing wheat output and cutting inventories, leading to a sudden increase in prices. Dryness is affecting suppliers including Russia, Argentina, Australia, and the United States, with the global wheat market getting tighter and expected to worsen. The USDA projects world wheat ending stocks at a nine-year low of 257.22 million metric tons in 2024-25. Some analysts expect the agency to trim its stocks forecast further, and there is potential for prices to rise further if the USDA cuts global production by 3.5 to 4 million tons.

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

Original content

Harsh weather affecting major global exporters is reducing wheat output and cutting inventories that have already been projected to hit nine-year lows while fuelling a sudden uptick in prices. Dryness afflicting suppliers from Russia, the world’s biggest, to Argentina, is making food production vulnerable as recent Russian attacks on grain ships in the Black Sea rekindle concerns about the war limiting supplies. While top Southern Hemisphere exporters Argentina and Australia have lost several million tons of wheat to drought and frost, a lack of moisture is hitting plantings for 2025 crops in Russia, Ukraine and the United States. “The wheat market is getting tighter and it is going to get worse,” said Ole Houe, head of advisory services at IKON Commodities in Sydney. World wheat inventories have fallen from record highs five years ago, U.S. data shows, as poor weather hurt output and Russia’s 2022 invasion of Ukraine temporarily spiked grain prices. Last week Ukraine said Russian ...

Source: UkrAgroConsult