Frosts in Russia boosted wheat prices to the highest since august 2023

Frosts that hit many regions of Russia in May caused a surge in wheat futures on the Chicago Mercantile Exchange. The cost of the cereal grain increased to the highs of August 2023, Bloomberg writes.

Russia is the world’s largest wheat supplier. Earlier forecasts for the harvest in 2024 had already been downgraded, which influenced the growth of futures on CME. The frosts observed in May may worsen the situation for grain crops, which have already faced drought this spring, follows from the agency’s publication.

According to Dmitry Rylko, Director General of the Institute for Agrarian Market Conjuncture (IKAR), the situation in the entire European territory of the country is a cause for concern. Specific estimates of losses are not available now, but for a number of crops the damage is quite serious, he said.

Tags: prices, wheat, Russia