Wheat prices range too high
Drought-like conditions in Russia, which may impact sowing, coupled with possible export quotas are driving prices up. Rain in Ukraine may, however, quickly turn tables. IKAR has recently revised production estimates for Russia upwards to 83 million mt, a rise of 9 million mt over last year. Issue is that yields are better than expected in Siberia. Local buyers are, therefore, sceptical that high prices will persist.
Prices are expected to decline at the turn of the year, when Australia's record productin over 29 million mt arrives.