Wheat price reached record high on the international market since 2018. Now, price of 1 t wheat amounts to $ 207.2. The increase is 9.7% y-o-y.
Price rise for wheat and other grains, including soybeans and corn are due to lower-than-expected decline in grain stocks in the US. The reason for this decrease was unfavorable dry weather for the harvest in the USA this season.
According to the U.S. Department of Agriculture, as of September 30, wheat reserves in the country were down 8% year-on-year. The decline in corn stocks amounted to 10%, while the reduction in soybean stocks was 42%.
Due to the decline in local reserves, grain prices increased in the US, which in turn was reflected in rising global prices.
According to The Wall Street Journal, there was dry weather in Russia as well, which also reduced the volume of the Russian grains.
