Commodities
Home›Commodities›Agriculture›Wheat prices rise as Russia export disruptions offset…
Wheat prices rise as Russia export disruptions offset slower demand
The International Grains Council said global wheat prices were up 2% since the prior monthly report, despite Russia seeing sharply lower export quotations.
Wheat prices have firmed in recent weeks, supported by the effects of hostilities and scorching Northern Hemisphere weather, according to the International Grains Council. In its Aug. 20 Grain Market Report, the IGC said global wheat prices rose 2% versus the previous month, driven by firmer fob values elsewhere as Russia posted lower quotations.
The IGC cited worsening Black Sea bottlenecks and fading hopes for a near term ceasefire as additional upward pressure. It also noted that while the pace of export sales showed little improvement, some observers linked a recent upturn in port inspections to early signs of demand shifting toward US supplies amid Black Sea disruptions.
At the same time, the outlook outside Russia was mixed. The IGC said European Union prices were underpinned by expectations of fresh buying interest as exports from Russia and Ukraine declined, but slower physical trading and the euro’s appreciation weighed on export competitiveness and tempered overall demand.
Russia was the clear exception, with export quotations assessed sharply lower month on month. The IGC pointed to surging freight costs, a weakening ruble, and limited outlets for sizeable new crop supplies, saying major Black Sea grain terminals were effectively suspended and activity shifted toward Baltic ports, while US Wheat Associates estimated shutdowns could reduce Russian grain exports by 700,000 to 1.2 million tonnes in August, versus 5.7 million tonnes a year earlier.
Latest closeWheat $689.00 ▲5.5%