This will have a negative impact on wheat pricing. The spread between feed and high-protein wheat is already 15-18 USD/t, and may exceed 20 USD/t in the future.
There is a lot of feed grain in other countries as well: France, Germany, and Russia have problems with wheat quality. The current season will be problematic with the supply of food grains globally.
Those who have high-protein wheat are selling it to Lithuania and Germany, while the supply at small ports is low. While last season the markets were in surplus, with traders dictating prices, we are now moving to a deficit model. Farmers are not bringing wheat to the ports, so prices will rise. Currently, the notional marks on CPT basis of the Danube ports are 170-175 USD/t, by the end of the week we can expect the level of 180 USD/t. By the end of August, the price tags may reach above $200/t. As global demand is just starting to grow, there will be news about quality problems in other regions.
Poor quality of the new wheat crop will have a negative impact on the global grain market. This will lead to higher prices for wheat and other grains.
PigUA.info by bizagro.com.ua