News in brief: Wheat prices are set for their worst quarterly performance in 14 years, dropping about 11% over the past three months, mainly due to abundant harvests in the Northern Hemisphere, despite tensions in the Black Sea region. The collapse of a grain agreement in the Black Sea region has raised concerns about global food supplies, but ample supplies from other major producers have kept prices in check.
Wheat prices are on track for their worst quarterly performance in 14 years, as bumper harvests in the Northern Hemisphere offset ongoing tensions in the Black Sea following the collapse of a grain agreement.
Chicago wheat futures have lost around 11% over the past three months and are poised for a fourth consecutive quarterly decline, a news report said. These futures serve as a benchmark for wheat prices worldwide and provide a transparent and standardised mechanism for market participants to determine the current and future expected prices of wheat.
While Russia’s decision to exit the safe-passage deal in July has raised concerns about global food supplies, plentiful supplies from other major producers, including Russia, have kept prices in check.
Head of Agribusiness insights a ANZ Group Holdings Ltd., Michael Whitehead, told reporters that the events around the start of the Ukraine conflict showed that the world has a way of getting grain to the people who need it. He further implied that it may be the new, low price level for wheat.
Despite the collapse of the grain deal, Ukraine has continued to export grain using alternative routes, such as the Danube River. Ships have also started to return to Kyiv’s Black Sea ports, but analysts say it is too early to determine whether efforts to reopen a shipping corridor will be successful.
In a related development, the Irish Farmers’ Association (IFA) has called on the Minister for Agriculture to take action on the recommendations of the interim report of the Food Vision Tillage Group. IFA National Grain Chairman Kieran McEvoy said that confidence among tillage farmers is low and that action is needed to prevent a further decline in the tillage area in 2024.
