Wheat has risen in price: how an attempted rebellion will affect the price of bread
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President of the Grain Union Zlochevsky spoke about the future of wheat prices
Wheat on world markets is becoming more expensive, Bloomberg notes. Grain prices soared to their highest in four months. And all because of the fears of traders. According to the agency, an attempted armed rebellion in the Russian Federation could lead to interruptions in the supply of wheat to world markets. Meanwhile, Moscow is considering withdrawing from a grain deal designed to stabilize grain prices. The Ministry of Foreign Affairs called July 18 the day of completion of the unfulfilled agreements under the agreement. What awaits the price of wheat in the near future? About this “MK” said the head of the Russian Grain Union (RGU) Arkady Zlochevsky.
– There is a rise in price, but it is not significant. The rise in prices is primarily caused by climatic factors: drought in Australia, weather problems in Canada and in a number of European countries, as well as in the USA. All these risks are included in the prices. Roughly speaking, nothing major happened. On the exchanges, wheat is traded at $270. The price of Russian wheat is lower – $235-240. There are enough resources. Existing risks cause a slight rise in price, but this is far from the $450 that we saw during the pandemic.
– The grain deal expires on July 17th. Meanwhile, Russian President Vladimir Putin during the St. Petersburg International Economic Forum (SPIEF) said that Moscow is thinking about withdrawing from the agreement. How might the market react to such developments?
– I have long said that this deal is unprofitable for Russia. It won’t last, and that’s fine. This will not affect the general state of the world market in any way. In addition, Ukraine says that even if the deal is closed, it will continue to ship grain by sea.
– It turns out that Russia’s withdrawal from the agreement will not lead to an increase in wheat prices?
– There are no prerequisites for this. The harvest is sufficient, the market has cooled down.
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