Global wheat prices are currently trending higher than last year, mostly supported by weather concerns, trade tensions and regulations.
The Chicago Board of Trade (CBOT) price rose 5.9% between the 25th December 2019 and 22nd January 2020, whilst prices are 9% higher than the previous year. US wheat prices rose on the back of strong export sales and improvements in trade talks with China, providing optimism about potential sales after the Phase one agreement. In addition, Russia’s recent announcement of a introducing a non-tariff quota of 20 million tonnes for grain exports from January to June, supported price increases on the global wheat market.
As a result, for the main exporters have been rising since end of December, reflecting gains in the CBOT prices. EU prices were also supported by strong international demand amid crop concerns over heavy rains across western Europe. Meanwhile in South America, Mintec’s Argentinian prices are also rising additionally supported by strong export demand derived from a recent government decision to raise export taxes on some grains such as wheat, maize and soyabean.