Page 17 - Food Outlook

WHEAT
PRICES
International prices have decreased but still above last year
Worries over unfavourable weather affecting crops in Canada and the United States, combined with uncertainty about production prospects in several other major producing countries, resulted in firmer prices during the closing months of the 2016/17 marketing season. However, wheat quotations fell steadily from the beginning of the 2017/18 marketing season on indication of better than anticipated
harvests, especially in the EU and the Russian Federation. As the season progressed, weather concerns affecting growing conditions in Argentina and Australia as well as winter wheat plantings in the Northern Hemisphere, combined with storm- induced disruptions at US Gulf ports, provided occasional support to prices. However, in October, the benchmark
US wheat (No.2 Hard Red Winter), f.o.b. Gulf averaged USD 214 per tonne, down 10 percent from the beginning
of the season in July, but still nearly 11 percent above October 2016. In fact, since the beginning of the season, the United States’ wheat export quotations have remained above
Figure 1. IGC Wheat Price Index
January 2000=100
Figure 2. CBOT wheat futures for December
USD per tonne
210
200
190
180
170
160
150
2017
2016
JFMAMJJASO
220
210
200
190
180
170
160
150
140
130
WHEAT
Major Wheat Exporters and Importers
Major Exporters Major Importers
DJFMAMJJASO
2016 values
2017 values
FOOD OUTLOOK NOVEMBER 2017
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