TMN - Wheat

Wheat Price Rose Amid Supply Concerns

US wheat price rose on Tuesday amid Ukrainian export worries and concerns about weather conditions hindering the supply.

Chicago wheat futures for March delivery were trading higher by 1.01% to $762.60 per metric ton on December 13.

This event came following the attack on a port in Ukraine that disrupted the grain shipments in the Black Sea region.

Moreover, it is also affected by the cut in Argentina’s production caused by the persistent drought.

Accordingly, the Buenos Aires Exchange reported that the yields for the 2022-2023 harvest season might fall below its previous estimate of 12.40 million tons.

For November, it recorded an output of 23.00% for the crop planting area, compared to the 22.00%-point delay in the prior year.

In May, the organization predicted 20.50 million tons of wheat harvest. However, drought and frost have hit the crops, resulting in crop loss.

Likewise, business consultancy AgRural noted that the farmers are still concerned about the scarce rainfall.

Fortunately, such weather did not cause severe losses, and the forecast points to abundant showers in the coming days.

Consequently, the US Agriculture Department noted that the commodity’s export totaled 218,460.00 tons in December.

Besides, China’s wheat output has remained the same despite the gains in the country’s soybean crops.

Ukraine Port Stopped Operations After Drone Strike

On Sunday, Ukraine’s Odesa port stopped operating after a Russian drone hit two energy facilities, causing a power outage.

Furthermore, the strike hindered the country’s exports which in turn affected the wheat price.

Previously, Moscow has been eyeing Kyiv’s energy infrastructure through waves of drones and missile attacks.

Following the attack, Agriculture Minister Mykola Solsky noted that some traders did not suspend their operations.

In particular, he pointed to the two other ports, Chornomorsk and Pivdennyi, that were still partially working.

However, the Ukrainian infrastructure ministry stated that the lack of energy supply would further slow the country’s export.

Consequently, the nation’s grain export in the first eight days of December plunged by 47.60% to 1.09 million tons from a year prior.

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