Chicago wheat; futures were at $11.1 in latter April, easing from the six-week high of $11.4 touched on April 19th as higher supplies from India balanced supply concerns due to the war in Ukraine.
Egypt, the largest importer of Black Sea wheat, approved India as an official supplier after a large harvest and higher global prices made Indian wheat competitive.
Egypt is expected to purchase 1 million tonnes from India, including 240 thousand in April. Still, prices remain over 30% higher than before the Russian invasion amid interrupted exports from the Black Sea.
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 should heavily impact Russia’s output. Together, Russia and Ukraine were responsible for nearly 30% of world wheat exports before the war.