GLOBAL - Much of the focus in the grain markets in the last 24 hours has concentrated on concerns of reductions to international supplies of wheat.
Already this month has brought apprehension surrounding Russia’s wheat exports, confirmed declines for this year’s Australian wheat output and further threats for Ukraine’s 2015/16 wheat crop from potential winterkill.
Russia and Australia alone represent the third and fifth biggest wheat exporting countries in the world.
So with how much wheat they will be able to bring to the world export market in doubt, this could present an opportunity to drive demand for wheat to the US and EU.
EU export demand continues to drive ahead of last year’s pace, with the latest figures indicating that EU wheat export commitments totalled 12Mt as at 26 November, 7.4 per cent ahead of last year.
If key global importers switch their focus to more reliable supplies of wheat from the EU, the current end year stocks forecasts of 13.7Mt (EU Commission) may end up not being as high as previously thought.
TheCropSite News Desk