Wheat futures on the Chicago Trading Exchange fell 1.9% to their lowest level since September 2021, as rain in key growing areas over the weekend improved U.S. harvest prospects according to a report of Reuters.
The possibility of renewing the grain corridor agreement in the Black Sea put pressure on corn and wheat. The agreement has increased competition for suppliers of wheat and corn and ends in March.
Export demand for U.S. grain has fallen, despite the struggle between two key global suppliers.
A year has passed since the invasion, and the market returned all the gains at the start of the war, and moreover, it has declined, said Brian Basting, a product research analyst at Advance Trading.
May CBOT soft red wheat futures fell to $7.10 per bushel (43.25 kg). At the beginning of the session, prices reached the bottom at $7.05 per bushel, which was the lowest since September 30, 2021.
Recall that wheat is the most important grain in the world. In total, it is grown on about 220 million hectares. Last year, the value of the world wheat market amounted to $127.7 million. According to analytical estimates, within 5 years this market will grow to more than $ 169 billion.
The price of bread in the European Union in August increased by almost 20%, as the Russian invasion of Ukraine, which is the main exporter of grain and fertilizers, continued to undermine world markets and accelerate overall inflation.
Global demand for wheat may increase by 11% over the next decade. This was noted in the forecast of the Food and Agriculture Organization (FAO) Agricultural Outlook 2022-2031.
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