The extreme weather in the United States significantly hampered the country’s grain output, adding conflicts to supply tightness amid a global food crisis. The state is the world’s fourth-largest of the staple crop.
Washington previously called on its local farmers to seed more winter wheat this autumn. In addition, the government said it would allow planting on several environmentally sensitive land beginning this fall.
However, analysts cited that the drought and costly farm inputs could notably cap production gains.
As of May 22, the growers have only seeded 49.00% of their intended spring wheat acres, marking the slowest pace since 1996.
The benchmark Chicago Board of Trade wheat prices has surged 50.00% to more than $13.60 per bushel after Russia invaded Ukraine. Remarkably, the geopolitical crisis halted shipments of nearly a third of the world’s exports.
However, North Dakota, the top US grower, expected to plant wheat over the smallest share of its farmland. This move is despite the growing demand for the crop.
This conflict is an additional problem to the worsening harvest prospects in China and parts of Europe. It also followed an export ban by major producer India, significantly tightening stocks and exacerbating global food supply concerns.
Previously, the United Nations has warned about the impact of the war on grains, oils, fuel and fertilizer. The organization has emphasized that the crisis could throw millions of people into famine and take years to resolve.
Wheat futures skid on Tuesday
Meanwhile, the US wheat futures have slipped 2.07% or 25.50 points to $1,131.50 per metric ton on Tuesday. The downturn came from the continued hopes for the comeback of Ukraine’s supply.
Russian President Vladimir expressed readiness to unlock grain cargoes blocked in Kyiv’s ports in coordination with Turkey.
However, the experts anticipated the downsides of being limited amid the continued tightening of global supply.
