look news india
The supply of wheat is decreasing in the global market. This is because farmers in major wheat exporting regions like the US, Australia and the Black Sea are not selling their crops due to low prices. Because of this, millers in Asia and the Middle East are facing stock shortage. There is a possibility of increase in the price of wheat due to lack of stock.
Meanwhile, global wheat stocks are expected to reach a nine-year low by mid-2025. High interest rates are also impacting wheat storage, further exacerbating supply shortages. Weather uncertainty in the Earth’s Northern Hemisphere is a concern for wheat crops. This may affect crop growth and increase the price of wheat in the global market. Due to this, the risk of increasing food prices across the world is also increasing.
Wheat markets around the world are facing supply shortages as farmers in major exporting regions including the US, Australia and the Black Sea have halted sales due to low prices. Black Sea wheat with 12.5% protein is currently selling for $265 per metric ton. Its price has fallen from $275 a few weeks ago. Australian premium white wheat prices fell to $280 a metric tonne from $290.
Farmers in the Southern Hemisphere are reluctant to sell wheat in anticipation of good prices amid good harvests. Australian farmers are currently opting to sell other crops like chickpeas and canola for quick cash. Similarly, American farmers are also hoarding grain in anticipation of rising domestic prices. Due to this attitude of farmers, the availability of wheat in the global market has reduced. This has increased the risk of price fluctuations.
Millers in Asia and the Middle East are particularly stressed, as stock coverage has fallen to less than two months in Asia and less than 45 days in the Middle East. Meanwhile, the USDA estimates that despite strong production in the Southern Hemisphere, global wheat stocks could reach a nine-year low by mid-2025.
Some farmers in Russia are selling their stock, which has reduced the crisis to some extent. However, their grain export quota is significantly lower than last year’s 29 million tonnes. It is also becoming a hindrance in the export of wheat. Amidst all this, wheat markets are facing increasing supply risks. Low wheat stocks could also pose a threat to global food security.