COM - Wheat prices spike as USDA forecasts deficit falling inventories

Wheat prices (W_1:COM) spiked Thursday, following the release of a USDA report forecasting a deficit market in 2022 and 2023. Prices of wheat (WEAT) have largely traded sideways, following a sharp spike on the back of Russia's invasion of Ukraine; however, shortage fears may be re-emerging:   According to the USDA, "global wheat production is forecast down with smaller crops in Ukraine, Australia, Morocco, Argentina, the European Union, and China." Inventories in the US are expected to continue their six year decline, and the USDA is projecting record average pricing for the 2022/23 crop, at $10.75 per bushel, the USDA expects prices to rise ~40% year on year. Compounding problems, Russian-flagged ships full of stolen Ukrainian wheat (WEAT) are being turned away from ports in the Mediterranean. Earlier in the month, India contemplated an export ban of the grain, as warm weather threatens to reduce this year's crop.

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Wheat prices spike as USDA forecasts deficit, falling inventories