On Monday, wheat prices increased as European futures had a three-week high since dry crop weather supported the market.
Wheat contracts for July delivery went up by 0.32% to $632.00 per metric ton on June 12’s Asian afternoon session.
The US Department of Agriculture’s World Agricultural Supply and Demand Estimates gained little reaction from the market. The forecast, released almost at the end of the session, included a higher consensus for European production.
Furthermore, dry weather patterns in the US and Europe caused doubts about harvest prospects. However, grain prices gained advantages this week thanks to the weather risks.
On Friday, farm data showed that the condition of French soft wheat crops went down for the second consecutive row. On the other hand, traders are observing if the storms forecast would bring moisture to plains this weekend.
Also, there is more profound concern about the dryness in Northern Europe and Northern Germany. Analysts say the situation is not bad since they can move from an excellent harvest to a positive average size. It is similar to the condition in Denmark, Sweden and the Baltic region.
Traders said that ample Russian wheat supplies curbed Western European prices. Moreover, Tunisia held back a tender on Friday amid importer demand concerns.
Global Warming Issues Worry Wheat Crops
Climate change can have various effects, like significantly impacting the food supply. According to new research, this weather condition will affect wheat output and global food supply.
The study from Tufts University’s Friedman School of Nutrition Science and Policy raised the problem. It states that severe temperatures will put pressure on crop productivity.
Their report highlights that the effects will greatly impact the nations that produce wheat, like China and India. Based on its primary author, heat waves would occur more frequently than in 1981.
In addition, researchers studied the possibility that continuous heat exposure would harm wheat growth.