CHICAGO: wheat futures rose past $10.5 per bushel, a one-week high and 25% above prices before the war in Ukraine as investors weighed on the FAO report and the impact of additional sanctions on grain supply.
Wheat production data in 2022 is forecasted to drop below the 5-year average in Ukraine, with at least 20% of winter plantations not being harvested due to direct destruction, constrained access, or lack or recourses to harvest the crop.
Meanwhile, the FAO emphasized there is high uncertainty with the expected wheat output for Russia, as sweeping sanctions and a declining economy could raise shortages of agricultural inputs.Read More…
Together, Russia and Ukraine were responsible for nearly 30% of world wheat exports before the war. Meanwhile, wheat utilization forecasts were scaled down by 2.4 million tonnes to due to lower feed use in India and the European Union.