Wheat School: Following What Happens in the Black Sea Region

With a growing share of global wheat trade, Russia, Ukraine and Kazakhstan — former Soviet Union countries — have become price setters in the world wheat market over the last few years.

As Bill Tierney, chief economist with AgResource Company, points out in this Wheat School episode filmed at Cereals North America ’15, much of the volatility in the wheat market in recent history traces back to the Black Sea region.

20150703 wheat“It is a zone of high-risk agriculture,” he says, noting the three countries listed above, as a regional unit, are now the world’s largest exporter of wheat. 25 years ago, they were the world’s largest importer of wheat.

Dig through the entire Wheat School series here

Barring what happens in this region, he says the global wheat surplus will likely continue to trend higher over the next three to five years. As global stocks build, prices will be depressed.

“You will have periods of intense volatility, and I think much of that volatility will come from events in the Black Sea region, whether they’re political events, meteorological events or a combination of both,” says Tierney.

 

RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.

Trending

Wheat prices jump into August — This week in the grain markets

This week, winter wheat prices touched a three-year high, but it didn’t last. Chicago SRW wheat prices for September 2018 gained 5 per cent or about 26 cents US/bushel to close at $5.56. While the December 2018 contract was up 5.4 percent — or nearly 30 cents — to finish a tad under $5.80. In…Read more »

Related

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.