Malaysia: Wheat supplies are shrinking and it’s bad news for bread prices

Published Aug 14, 2021

Tridge summary

Drought and heat damage in Canada and Russia, the world's second and third largest wheat exporters respectively, have led to significant crop losses, causing wheat prices to reach multi-year highs. The US Department of Agriculture has reduced its production forecasts for these countries, leading to a decrease in global stockpiles and increasing food price inflation concerns for the world's vulnerable populations. The higher prices are expected to impact both households and governments, especially in poorer nations that rely heavily on imports. The situation is further complicated by labor shortages, logistical issues, and rising freight costs. Despite these challenges, some countries are trying to build up their grain buffers to prevent supply shortages.

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

Original content

(Aug 14): Crop losses in two of the world’s biggest wheat exporters and quality concerns in a third have pushed prices to multiyear highs, adding to worries about food price inflation for millions of the world’s most vulnerable. Drought and heat continued to fry Canada’s wheat in July, months after a brutal winter hit the Russian crop. Those losses will only be partially offset by gains elsewhere for a crop planted on more land globally than any other, and used for basic foods like breads, pasta, and breakfast cereal. Wheat futures surged this week as the US Department of Agriculture slashed its forecast for Canadian and Russian production, pulling down global stockpiles and trade. A smaller US crop is also adding to the pressure. The impact will be felt by households and governments alike, especially in poorer nations reliant on imports. And in the US and elsewhere, higher bread costs would be another pressure point for a food supply chain already grappling with labor shortages ...

Source: Theedgemarkets