Global market price of wheat rises due to fear of reduced production

11-Oct-2024 06:13 PM

Sydney. Wheat production in some important exporting countries has been affected this year due to adverse weather conditions and natural disasters, due to which global market prices have started rising and rising. Producers in countries like Russia,

Canada and Australia have started stocking wheat in anticipation of further rise in prices, which is indicating a decline in the supply of this important food grain in the global market.

The global outstanding stock of wheat is estimated to fall to the lowest level in the last 9 years, due to which the market may remain bullish in the future as well.

In Russia, the largest exporting country of wheat, the crop suffered heavy losses this year due to lack of rain and high temperatures. The condition of wheat crop in Argentina is said to be weaker than normal.

Recently, due to Russia attacking grain-laden ships in the Black Sea region, exporting countries are avoiding using this route.

This is likely to affect the supply of wheat. Millions of tonnes of wheat have been lost in Australia and Argentina, the two largest exporting countries of the Southern Hemisphere, due to severe heat, lack of rain and dense fog.

Whereas, due to lack of moisture in the soil of the fields, sowing for the 2025 crops in countries like Russia, Ukraine and America is likely to be affected.

The estimate of wheat production in Russia has been reduced. This is having a psychological effect on the market.

According to a leading analyst, the complexity of supply and availability in the wheat market has increased, while the situation is likely to get worse in the future.

USDA data shows that the global outstanding stock of wheat had reached a new record level five years ago, compared to which it is estimated to be about 14 percent less this time.

Russia has destroyed the infrastructure by attacking Ukraine's Odessa port with a missile for the third time in the last four days.