Drought in Australia raises the demand for black sea wheat
Unusually high for this time of year, the temperature and drought that prevail in Australia, can worsen the condition of wheat crops.
In October in the country usually begin to harvest the wheat. Experts expect a significant reduction in yield and deterioration in the quality vysokopolnogo grain in the Eastern regions.
According to estimates from Reuters, in the 2017/18 season, the wheat harvest in Australia will be reduced to 20.15 million tons, which is 40% less than the record figure of the previous year and 7% less than the official forecast of the Ministry of agriculture of Australia (21,64 million tons). Even more, the current crop may be the lowest since 2007/08.
concern about the fate of Australian wheat is forcing its traditional customers to stock up on cheaper black sea and us wheat. In the Asian market Australian wheat is already more expensive than American, which is not typical this time of the year and further increases demand for grain from the United States.
compared with last year, exports of Russian wheat since the beginning of July increased by 16% yoy to 9 mln tons.
Ukraine exported 6.5 million MT of wheat from the expected 16 million tonnes, including food and 3.6 million tons, forage – 2.9 million tons.