The wheat market has posted the top advantages
The wheat market has posted the top advantages on trepidation a necessity to conserve supplies for national needs will limit exports in many key producing countries, Ukraine and Russia particularly.We have seen increasing talk that in the wake of this coronavirus many countries may start to hoard supplies of agricultural commodities and in turn fuel that a food scare similar to what has been seen in the 2007-2008 time when food riots happened in a number of countries.Remember that wheat and rice are the two main consumed foods however, the USDA's Foreign Agricultural Service newest Grain: World Markets and Trade book prices have rallied for both even though international supplies are at record levels and the share of stocks to ingestion is historically large.Major manufacturers like China, the European Union, India, Russia, and the USA have produced at levels which are greater than sufficient to meet rising global demand.Furthermore, wheat harvests in important producing nations in the Northern Hemisphere are only a couple of months away.Wheat ending stocks will also be estimated in a record 292.8 million with China holding about half of stocks.As for rice, while production levels are down year-over-year at 496 million metric tons, a bumper 2019/20 international rice harvest is still expected and even with lower manufacturing, entire provides are upwards from the previous year because of record carryin stocks with 2019/20 stocks in a listing 181.6 million metric tons.The attached graphic shows the world wheat and rice stocks-to-use ratios with and without China and while planet wheat less China wheat stocks-to-use ratio is the tightest since the 2012/13 season, we aren't anywhere near the very low amounts for both global wheat and rice which has been found from the mid 2000's.
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