BAKU, Azerbaijan, May 20. Lower-than-expected yields in Kazakhstan among the reasons for increase in global wheat prices, World Bank’s (WB) April 2022 Commodity Markets Outlook said, Trend reports citing the WB.
The report said that wheat prices soared more than 30 percent in 1Q2022 (q/q) to exceed $530/mt in March, an all-time high.
Thus, prices surged when exports from Ukraine, which account for nearly 10 percent of global exports, were halted due to the closure of all Ukrainian ports on the Black Sea, which account for about 90 percent of Ukraine’s wheat exports. Limited quantities of wheat exports resumed in early March through rail and road corridors.
“Although precise estimates of such exports are not available, perhaps as much as half of Ukraine’s exportable wheat could eventually be exported overland, although at a greater cost than by sea. Exports of wheat from Russia so far have not been affected. At a global level, production during the ongoing season (which ends in August) appears favorable as good crops in Argentina, Australia, and the European Union are expected to compensate for lower-than-expected yields in parts of Canada, Kazakhstan, and the United States,” the report said.
The report added that global consumption, however, is projected to grow at a much faster pace (almost 2 percent) on strong demand for animal feed. As a result, the stocks-to-use ratio will be two percentage points lower than last season, which is still high by historical standards.
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