Global wheat prices preserve increases amid current geopolitical tensions, weather concerns
Date
12/5/2023 6:06:01 AM
(MENAFN) Global wheat prices have maintained their upward trajectory as the new week's trading began, building on the momentum gained last month, which marked the highest rate in five months. The ongoing conflict in Ukraine and the impact of droughts on wheat-producing regions in the southern hemisphere have contributed to concerns about potential supply disruptions, keeping prices elevated in the market.
Despite Russia and Ukraine being major contributors to global wheat production, the prevailing fears of transportation disruptions due to the war have limited the prospects of a decline in prices. The uncertainty surrounding the geopolitical situation continues to cast a shadow on the ease of transporting wheat to global markets.
Additionally, the lack of rainfall in agricultural areas in the southern hemisphere has exacerbated concerns about the global wheat supply. Last month, the Western Australian Wheat Growers Association revised down production forecasts, attributing the adjustment to hot weather conditions.
As of the latest trading, wheat prices were at USD6.025 per bushel (equivalent to 27.2 kilograms), reflecting the continuation of an upward trend. This follows the conclusion of Friday's trading session, which witnessed wheat prices reaching their highest level since September of the previous year.
In contrast, corn futures prices experienced a 0.7 percent decline, marking the first drop in four days. Simultaneously, soybean prices also recorded a decrease of 0.8 percent, extending the downward trend.
The complex interplay of geopolitical factors and weather-related concerns underscores the volatility in agricultural commodity markets, emphasizing the significance of global events and climatic conditions on pricing dynamics. Participants in the wheat market will closely monitor developments in conflict zones and weather patterns to gauge the potential impact on future supply and demand trends.
MENAFN05122023000045015682ID1107537738
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.