Lower wheat harvest estimates in Russia led to the largest monthly jump in world prices since 2022

World wheat prices are rising again, largely due to Russia, Bloomberg reports.

The invasion of Ukraine led to a record increase in world wheat prices in 2022 due to fears that Ukraine and Russia would not be able to export their agricultural products to world markets. But subsequent large harvests in Russia cooled the market.

The situation is changing, as dry weather and late frosts in Russia’s main growing regions are pushing up global wheat prices. Analysts have lowered their 2024 crop estimates by more than 10%, leading to the biggest monthly jump in global prices since 2022.

“Producers in Ukraine and other parts of Europe are also facing difficulties due to weather conditions. Signs of a good harvest in the United States have pushed prices down since late May, but global stocks are still the lowest in 9 years,” the publication writes.

In addition to the “gloomy” harvest prospects, the lack of a clear understanding of the final harvest volume in Russia adds to the uncertainty.

Tags: wheat, Ukraine, Russia, prices