The price of milling wheat closed Monday at a new record on the European market, at 322.50 euros ($457.92) per tonne on the March 2022 deadline, driven by the Russian-Ukrainian crisis.
The blocking of Ukrainian ports, while Kiev is the world’s fifth largest exporter of wheat, and the postponement of operators on this cereal in reaction to the surge in corn explain in particular this new historic high, explained to theAFP Damien Vercambre, broker for the firm Inter-Courtage.
It’s a three cushion shot between wheat in Chicago, wheat at home and corn
he said, referring to the rise in prices on the Chicago Stock Exchange and the surge in corn on world markets.
In this configuration, wheat is driven by corn, in a context of tension on world stocks.
The export is completely stopped
from Ukraine and, therefore, an alternative must be found to the 10, 12, 13 million tonnes of maize that remain to be exported from Ukraine
detailed Mr. Vercambre.
The conflict, which could be relatively short, finally lengthens
and moreover takes all of Ukraine
: we are in the worst situation we can expect
he summarized.
On the day the Russian invasion of Ukraine began last Thursday, the price of wheat had already broken its all-time high on the European market, closing at 316.50 euros ($449.32) per ton on the March deadline. 2022.
Ukraine accounts for about 12% of world wheat exports.
