Market observers explain the decline with reports from Egypt: the important wheat importer has announced that it intends to reduce deliveries to 500,000 tons per year.
The price of wheat fell to its lowest level in four months on Monday night. At one point, a bushel — about 27 kilograms — traded for $9.26 on the Singapore Stock Exchange. The last time the wheat price was this low was at the end of February, when Russia launched a war of aggression against neighboring Ukraine.
Market observers refer to reports from Egypt as the reason for the current price decline. Accordingly, the country plans to reduce wheat imports.
According to an Egyptian government official, the country wants to reduce imports of wheat by 500,000 tons per year. The North African country is a major importer of wheat from the war zone. As a result of the war, deliveries failed to materialize and world market prices rose sharply. A bushel of wheat traded as high as $12.85 at one point in May.
Russia and Ukraine are among the most important wheat-growing countries in the world. Both countries together covered about a quarter of the world wheat trade before the war.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
