the rise in the price of wheat worries the world

Wheat stood on Euronext for the record price of 393 euros per ton on Friday.

The price of wheat continues to climb to maddening levels, showing Friday at 393 euros per tonne on Euronext, in reference to the March deadline. By way of comparison: in November the tonne amounted to 284 euros. With the war between Russia and Ukraine,everyone expected a spike in the price of gas I never thought grains would reach such a level”, says the economist Philippe Chalmin, who specializes in commodities.

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Tensions have left almost no ships sailing across the Black Sea, blocking wheat exports. Problem, Russia and Ukraine represent 30% of world exports, with 75 million and 33 million tons of wheat, respectively, produced annually. Russia is the world’s largest exporter and Ukraine the fourth, with 75% of its production going abroad.

Facing the threat of a wheat shortage, Hungary’s agriculture minister announced on Friday that it would halt exports. For this season, the country has already sold about 127,000 tons of common wheat abroad. The same observation for Moldova, which has temporarily halted exports of wheat, maize and sugar since the beginning of the month. On the side of Bulgaria, authorities indicated at the beginning of the week that “the state had the levers and mechanisms to prepare for a possible food crisis, respecting the principles of the market

China fears ‘worst harvest in history’

In France, on the other hand, there is nothing wrong with production. In fact, “French common wheat imports represent on average just 2% of production over the past five campaigns” said the FranceAgriMer site in January 2020. According to Philippe Chalmin, “France will be indirectly affected by the price increases, which will not be easy for breeders. But the country can also benefit from the situationIndeed, France exports half of its production, mainly to North Africa. The country could reach new customers such as Algeria, Morocco or Tunisia, who are currently doing business with Ukraine. According to experts, the United States and India could also become new buyers. for their wheat production.

These exchanges could take place earlier than expected as China fears the “worst harvest in its history“, said a statement from the Minister of Agriculture on Saturday. In question, rare abundant rain last year and a delay in planting. There are therefore concerns about the supply of grains to the world’s largest consumer of wheat, which is far from self-sufficient. is in his production. But Philippe Chalmin tempers: “The Chinese can still import Russian wheat by train, even if it loses quality

Internationally, some countries have already taken steps to increase their control over local products, such as Turkey and Argentina. The Argentine government therefore intervenes directly in the local wheat market to guarantee supplies to local millers and to keep the prices of products such as flour or pasta as low as possible. According to the Ministry of Productive Development, 800,000 tons of wheat will be allocated to millers in the country.

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