Chicago Wheat Futures prices continue to rise for the hour, trading near their nine-year highs earlier this week, and are on track for their second straight weekly gain. The shortage of global supply is supporting the market.
"Prices in Europe and the Black Sea rose to their highest levels this season," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia, referring to wheat prices in key exporting countries.
"That shows that the prices have settled down at a higher price level since last week."
The International Grains Council yesterday lowered its forecast for global wheat production in 2021/22, partly due to the drought in Iran.
In its monthly update, the IGC reduced its estimate for the global wheat harvest in 2021/22 by 4 million tons to 777 million tons.
Heavy rains threaten to damage Australia's crops, floods have interrupted export routes in Canada and drought casts doubt on production in the USA and the Black Sea region at an early stage.
Consulting firm Strategy Grains has slashed its forecast for wheat demand in the European Union in 2021/22 as high prices erode exports and prompt industrial processors to switch to corn.
Source
Hansa Terminhandel GmbH