Wheat futures in the US rose to $6.4 per bushel, moving further away from the over-two-year low of $5.9 touched on May 30th as the destruction of a dam in Ukraine is set to impact the crops.
A blast at the Kakhovska hydroelectric dam will cut the water supply that is essential for agriculture in the southern part of the country, Trade Economics reports.
The price may also rise further in Nigeria as Ukraine is a major supplier of wheat imports to the country, with over 20% share of total imports.
DAILY COMMERCE reports that the United States Department of Agriculture, USDA, has predicted that Nigeria’s wheat consumption in 2023/24 will reduce by six percent from the 2022/23 due to deteriorating macroeconomic conditions, and high cost of production leading to high prices of wheat-based commodities.
A bumper harvest in Russia raised foreign sales forecasts to nearly 50 million tonnes despite Moscow’s recent increase in grain export duties.
Sellers in the world’s top exporter have shaven-off prices as the current record-high harvest raised inventories to unsustainable levels.
