wheat markets and cash price information at commoditybasis
TRANSCRIPT
Wheat Markets and Cash Price
information at CommodityBasis
Wheat is the second largest crop in the world in terms of volume. The European Union is the largest producer of the grain with an output of 156 mmt in 2014/15, followed by China with an output of 126 mmt.
While wheat isn’t the largest crop in terms of production, it is the product that is traded the most internationally with 151 mmt expected to be exported in 2014/15.
The biggest exporters of wheat are the European Union, the United States, Canada, and Russia with the largest importers of wheat being Egypt, Indonesia and Algeria.
Egypt has set the goal to become less dependent on wheat imports in the near future because high wheat prices can weigh heavily on the national budget.
Explanation Of Wheat Varieties And PricesWheat is a generic term referring to different varieties of the grain. varieties
are planted in fall, where they slightly germinate before winter sets in.
Plants will remain dormant over the winter but the early start allows them to produce superior yields the following summer. Hard wheat prices are generally higher than soft wheat prices due to their higher protein content.
The most common varieties of wheat are:
Hard red winterHard red springSoft red winterDurum (hard)Hard whiteSoft white wheat
Wheat Prices In EuropeThe European Union is the largest producer of wheat in the world with the
largest producers within the EU being France (aprox.. 40mmt) and Germany (aprox. 25mmt).
As of now, Bordeaux and La Pallice have the ability to handle greater quantities. Wheat prices FOB France are important for traders in Europe, as well as wheat prices FOB Baltic and feed wheat prices FOB UK.
Wheat Prices In AsiaChina produces about 18% of worldwide wheat, or 122 mmt in the 2013/2014 year. Wheat is one of the main staples and is about 40% of the total grain consumption in the country. 60% of all Chinese consume a wheat product daily.
The largest part of the wheat is produced in the eastern part of the country in the provinces of Henan and Shandong.
India plants almost exclusively winter wheat with the wheat growing areas located in the northern regions of the country. The state of Uttar Pradesh produces 35% of all wheat in India and Punjab produces 22%.
A Note On Wheat Prices In The Black SeaRussia is in the top 5 of biggest Wheat producers in the world. Wheat in
Russia is produced in an area stretching all the way from Kazakhstan to the Black Sea. The country is the third largest exporter of the product in the world.
Another important producer of wheat is Ukraine. The country produces around 25 mmt per year and exports a little less than half of that, mainly through ports in the Black Sea. As in Russia, Ukraine is feeling the pressure from their falling currency.
A Note On Wheat Prices In Australia
The high demand and export wheat prices in Australia are reliant on Asia. Most exports from Australia go to China and Indonesia because Australia has a significant competitive shipping advantage in comparison to other exporting countries such as Canada and the US.
Shipping product from the Australian west coast to Indonesia takes a little over 6 days compared to 22 days for the closest competing nation, Ukraine.
Wheat Prices In North America
The United States is the third largest producer of Wheat in the world after China and India. The country mainly produces soft red spring wheat and hard red winter wheat.
The United States is one of the biggest exporters of the grain mainly from the Gulf area and the Pacific North West, while the biggest importers of the product are Japan and Mexico.
