No Result
View All Result
World Press Time
  • Home
  • United States
  • UK
  • World
    • Canada
    • Europe
    • Australia
    • Asia
    • South America
    • Africa
  • Politics
  • Business
    • Economy
    • Finance
    • Investing
    • Markets
    • Companies
    • Crypto
  • Lifestyle
  • Entertainment
  • Health
  • Technology
  • Science
  • Sports
  • Travel
  • Contact
Subscribe
  • Login
  • Home
  • United States
  • UK
  • World
    • Canada
    • Europe
    • Australia
    • Asia
    • South America
    • Africa
  • Politics
  • Business
    • Economy
    • Finance
    • Investing
    • Markets
    • Companies
    • Crypto
  • Lifestyle
  • Entertainment
  • Health
  • Technology
  • Science
  • Sports
  • Travel
  • Contact
No Result
View All Result
World Press Time
No Result
View All Result
  • United States
  • UK
  • World
  • Politics
  • Business
  • Lifestyle
  • Entertainment
  • Health
  • Technology
  • Science
  • Sports
  • Travel
  • Videos
Home Business Markets

Wheat prices: Black Sea export threat is just one constraint among many

Press Room by Press Room
7 months ago
in Markets
Reading Time: 2 mins read
122 5
A A
0
34
SHARES
489
VIEWS
Share on FacebookShare on Twitter

Russia has withdrawn from a deal allowing Ukrainian grain exports from Black Sea ports. No one should panic. The Chicago wheat futures benchmark rose 7 per cent to almost $9 a bushel. That is relatively high. But the figure is still well below the peak that followed Russia’s invasion of Ukraine in February.

The picture mirrors the hydrocarbons market. After eight months of war, supply uncertainties have come into sharper, narrower focus, reducing volatility. Wheat is plentiful, thanks to a good harvest. Getting it to where it is needed remains a problem.

Ukraine and Russia previously accounted for almost a third of global wheat exports. Ukraine may export just 6mn tonnes this year if it is lucky, one-third of what is typical, according to UBS estimates. Russia is also failing to get much of its crop to market. Many shippers are unwilling or unable to send vessels into harm’s way. Even so, a bumper global harvest pushed net speculative short positioning on US wheat futures to a two-year high last week, notes Saxo Bank.

That looks odd given supply concerns. Russia should export about 42mn tonnes of this year’s harvest. It has only managed to ship about 12mn tonnes so far, slightly below last year. Countries in Africa and the Middle East are reliant on these exports and are now paying steep premiums.

Weather is likely to return as a factor with the start of harvests in the southern hemisphere. This is subject to a third consecutive period of disruptive La Niña weather conditions. Rain is already causing flooding in Australia. A drought in Argentina means the harvest could be a quarter below normal.

US water shortages suggest winter wheat for harvest next year will suffer too. Russian and Ukrainian farmers may meanwhile plant less wheat next year if the war continues, impeding lucrative exports.

The sensitivity of agricultural commodities prices to multiple granular factors is hardly news to traders and food manufacturers, however. The Ukraine war has simply become one of these factors. Reflecting this, prices are only slightly higher than their prewar peak of $8.4 a bushel.

Read the full article here

Share14Tweet9Share2Pin3SendShareShareShareShare
ADVERTISEMENT

Related Articles

Markets

Philip Morris chief says group on path to becoming an ESG stock

Markets

Wall Street banks re-enter junk debt market

Markets

Turkey’s lira weakens as economists warn of economic challenge

Markets

Bank turmoil does not justify mission creep by deposit insurance

Markets

PayPal CEO wanted: must be able to reverse $293bn share price slump

Markets

Commercial property’s big reset will present opportunities

Markets

US retail investors: losing their animal spirits

Markets

Brussels proposes tough targets for live trading database operators

Markets

Temasek cuts pay of employees behind failed $275mn bet on FTX

Load More

Recommended

Alberta election: NDP makes gains, UCP Cabinet to look ‘very different’

Amber-Jade Sanderson receives backing to replace Mark McGowan as WA Premier

The Best Memorial Day Deals at Nordstrom, Wayfair, Amazon and Walmart — From $9

THE MOST IMPORTANT FINANCE NEWS AND EVENTS OF THE DAY

Subscribe to our mailing list to receives daily updates direct to your inbox!

Trending Now

    About Us

    World Press Time

    World Press Time is your one-stop news portal, follow us to get the latest politic, business, sports, entertainment any more. follow us now.

    Topics

    Africa Asia Australia Business Canada Companies Crypto Economy Entertainment Europe Finance Health Investing Lifestyle Markets Politics Science South America Sports Technology Travel United Kingdom United States Videos World

    Get informed

    THE MOST IMPORTANT FINANCE NEWS AND EVENTS OF THE DAY

    Subscribe to our mailing list to receives daily updates direct to your inbox!

    • Privacy Policy
    • Terms of use
    • Press Release
    • Advertise
    • Contact

    © 2022 World Press Time - All Rights Reserved.

    No Result
    View All Result
    • Home
    • United States
    • UK
    • World
      • Canada
      • Europe
      • Australia
      • Asia
      • South America
      • Africa
    • Politics
    • Business
      • Economy
      • Finance
      • Investing
      • Markets
      • Companies
      • Crypto
    • Lifestyle
    • Entertainment
    • Health
    • Technology
    • Science
    • Sports
    • Travel
    • Contact

    © 2022 World Press Time - All Rights Reserved.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website, you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.