CHICAGO: Wheat futures rose to $11.4 per bushel in mid-April, the highest in over five weeks and approaching an all-time high of $1243 hit in March, amid lingering concerns of supply shortages.
Droughts in North America and interrupted exports from Black Sea regions left importers to scrap supplies from other areas, while world-ending stocks are in downward momentum.
US drought monitors noted that 67% of Kansas and 85% of Oklahoma farms had little to no rain in the last 30 days, hampering winter wheat growth.
Meanwhile, the FAO expects Ukrainian wheat production to significantly fall in 2022, with at least 20% of winter plantations not being harvested due to direct destruction, constrained access, or lack of recourses to harvest the crop.
Also, a declining economy and shortages of agricultural inputs are expected to negatively impact Russia’s output. Together, Russia and Ukraine were responsible for nearly 30% of world wheat exports before the war.