Global Wheat Prices Rise Amid Weather Threats and Export Disruptions
Global markets on Thursday witnessed a continued rise in wheat prices for the second consecutive day, amid escalating fears of supply shortages due to severe weather conditions in the United States, as well as potential tensions in wheat exports from Russia and Ukraine.
The U.S. Department of Agriculture warned of a severe heatwave and stormy winds hitting wheat-growing areas in the central and southern plains during the winter season, noting that wildfires are already raging in these regions, increasing pressure on the domestic crop.
At the Chicago Commodity Exchange, wheat futures rose by 0.7% at the start of trading on Thursday, following a 1.8% increase on Wednesday, according to the German news agency (DPA).
As of 1:36 AM Singapore time, the price per bushel was recorded at $5.55, while soybean and corn prices saw slight changes.
The sudden halt in peace talks between Russia and Ukraine has also affected expectations of disruptions in wheat exports, with concerns regarding the port infrastructure in both countries, according to agricultural economist at the Commonwealth Bank of Australia, Denis Voznesensky.
Analysts believe that these combined factors make wheat one of the most sensitive commodities to fluctuations, amid growing international concerns about the stability of global food supplies.
