Because of message from Egypt
Wheat price as low as last February
06/27/2022, 3:43 p.m
Because of the war in Ukraine, the price of wheat is increasing. It is now falling to its lowest level since February. Market observers attribute this to an announcement by Egypt to reduce grain imports. Great Britain promises Kyiv help in the fight against grain theft.
The price of wheat fell to its lowest level in four months overnight. At one point, a bushel (about 27 kilograms) traded for $9.26 on the Singapore Stock Exchange. The last time the wheat price was this low was at the end of February, when Russia launched a war of aggression against neighboring Ukraine. Market observers referred to reports from Egypt as the reason for the current price decline. Accordingly, the country plans to reduce wheat imports.
According to an Egyptian government official, the country wants to reduce imports of wheat by 500,000 tons per year. The North African country is a major importer of wheat from the war zone. As a result of the war, deliveries failed and world market prices rose sharply. A bushel of wheat traded as high as $12.85 at one point in May.
Russia and Ukraine are among the most important wheat-growing countries in the world. Both countries together covered about a quarter of the world wheat trade before the war. Ukraine not only accuses Russia of blocking wheat exports through Black Sea ports, but also of stealing several hundred thousand tons of wheat and selling it to Turkey and other countries. Russia denies this.
Great Britain announced that it would support Ukraine in the dispute. The UK government is providing technology to verify the provenance of wheat, Agriculture Minister George Eustice said. Britain is working with other countries, such as Australia, to ensure stolen Ukrainian wheat does not make it onto the market. Eustice also said the UK is also looking at what can be done to help Ukraine repair its railways to get the wheat out of Ukraine overland.