Wheat Prices are Steadily Rising

The effects of the war, which started with the Russian invasion of Ukraine, continue to worsen expectations in agricultural production. The forecasts of the United States Department of Agriculture caused wheat prices to gain upward momentum in global markets.

Negative developments, including the Russia-Ukraine war and climate problems, put the world's wheat production in danger. An estimate announced in the USA brought the concerns to the top. According to the statements of the US Department of Agriculture, production in Ukraine, one of the largest wheat producers in the world, will decrease by a third compared to last year. In addition, persistent drought, flood and sudden heat waves will negatively affect production from the USA to France and India. In Chicago, benchmark wheat futures rose by 70 cents per bushel, the maximum allowed, following the US Department of Agriculture's report, which included the first global forecast for next season. Both winter wheat and Minneapolis spring wheat were at their greatest levels since 2008, rising to their daily ceilings before recovering their gains. Corn and soybean futures also increased. Due to slow planting, U.S. Department of Agriculture production predictions for domestic corn crops fell short of expectations, while December futures set a new high.