29 July

Wheat prices continue to climb on today’s market and UK farmers are holding their nerve looking for £150/tonne. The price rise is driven by a flurry of bad news on the global grain market from all quarters.

• The Russian drought is forecast to carry on as no rain is forecast for the first half of August.
  
• The Canadian crop forecast has been cut due to heavy rains.
  
• Ukraine cut their export potential from 21.2 MT to 18.5 MT and
  
• a third of India’s grain is reported at being at risk of rotting due to lack of storage.

The wheat harvest in Russia is predicted to fall by 24% according to the Institute of Agricultural Studies in Moscow. Russia is the third largest producer of wheat making this decline significant on the world market.  Meanwhile news from India, the second largest wheat producer added to the pressure on wheat prices to climb. The Food Corporation of India report that 16.8 MT of grain lies unprotected in the open, whilst reports from the Punjab, West Bengal, Uttar Pradesh and Gujarat show grain held in open stores is already rotting.

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Links

India's Food Reserves left to rot.

Wheat resumes rally as drought in Russia, Europe pushes buyers toward U.S.

Wheat aims at best month since 1973