Global supply pressures limit U.S. wheat market upside despite strong demand
An ag economist says the wheat market currently faces a tough situation.
Greg McBride with Allendale says there’s very good demand for U.S. wheat. “You just saw the USDA increase the export demand number on Friday’s report.”
But he tells Brownfield the problem is that any sustained upside might be limited by the large global supply.
“Whether it’s Russia, the EU, or Australia, all these numbers continue to come in a little bit better. Australia is in the early stages of harvest right now and that’s a big situation because they are big exporters.”
McBride says there are solid production prospects for Argentina, Ukraine, and Russia.
“Russia being the largest exporter out there, they are increasing their production and increasing the overall export demand they are expected to see. That’s going to weigh on us.”
The European Union’s MARS says Ukraine’s soft wheat yield is expected to be below average, citing inconsistent weather. France’s Ag Ministry has soft wheat production at 33.3 million tons, up slightly from the last guess and larger than average.
Further development of the grain and oilseed markets of Ukraine and the Black Sea region will be in the spotlight of the BLACK SEA GRAIN. KYIV conference, taking place on April 22–23 in Kyiv. The event will focus on strategic directions for the agricultural sector through 2030, including investments, energy independence, processing, and exports of high-value products.
Join strategic discussions and networking with industry leaders to gain актуальна insights, discover new business opportunities, and build partnerships with key market players.
Read also
Invest in the Best: What Attracts Investors in Agri Today
Wheat imports in Indonesia rise amid stronger demand and changing consumption trends
Estonians running cars on cooking oil in the face of soaring diesel prices
Saudi Arabia’s flour mills implement artificial intelligence
Asymmetry in the Ukrainian oilseed market: meal is in greater demand than edible oil
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon