US Wheat Prices Continued Rising & Losing Competitiveness in 2022
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Throughout 21/22, Wheat prices globally rose due to the freight crisis and a tighter global supply. Moreover, Russia Wheat export tax contributed to the global prices rise and market volatility. Coming into 22, US Wheat prices were already lacking competitivity against exporters. In Jan 22, US Wheat prices traded 87.8 $/mt and 90.2 $/mt higher than Russia & France Milling Wheat, respectively, and on average. Despite resisting the price surge in Mar, reducing the spread with Russia to 57.6 $/mt and 25.9 $/mt with France on average, US Wheat prices continued to rise past 500$/mt on drought and decreasing production.
Meanwhile, France & Russia Milling prices remained below the 450$/mt bar. In May, US Wheat prices peaked at around 550$/mt mid-May, leading to a 137$/mt delta with Russia Milling Wheat prices. With US Wheat prices lacking competitivity, to which countries do the US export their Wheat?
US, Russia, France Weekly Milling Wheat Spot Prices Between Jan & Aug 2022
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