Rabobank: Wheat buyers considering other sources
Wheat prices continue to climb as the Russian invasion of Ukraine is ongoing. A Rabobank analyst says the world’s biggest wheat buyers may need to reconsider whether they’ll continue buying grain from the Black Sea regions.
“Russia and Ukraine have moved a lot of wheat into the market already, so things should be pretty good for this year,” says Stephen Nicholson of Rabobank. “However, the bigger problem is we don’t have enough world stocks to make up for the loss of Russia and Ukraine because they are such big producers.”
Buyers will have to reconsider business in the Black Sea region because of doubts about getting vessels out of the region safely. The Hagstrom Report says buyers may turn to other suppliers like the U.S., Argentina, and Europe. With the ongoing acreage battle between corn and soybeans in the U.S., Nicholson says we’ll see what the war does to the number of U.S. wheat acres.
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