Fruitful Harvest and Growing Demand in Ukraine Propels Wheat Prices to Surge

In contrast to the previous month, Wheat prices across the European region, particularly in Ukraine, increased slightly. A good harvest drove this modest rise in price in August 2023 in Ukraine, where farmers harvested about 21.9 million tonnes of Wheat, or roughly 94% of the area that had been planted. The average yield was also 4.64 tonnes per hectare, a slight improvement over the average from the previous year. Most of the country's Wheat harvest has been finished except for a few war-affected regions in Ukraine's east.

This upright in the Wheat harvest during August was made possible by several factors, including favorable weather, good crop management techniques, and high-quality seeds. Due to the disruptions in grain and fertilizer transportation, the war did have some effect on the harvest. Nevertheless, the Wheat harvest was successful overall and could meet both domestic and international demand. Further supporting this, local farmers have also raised their prices in the local market due to the increased availability of newer stocks and existing inventories thanks to this month's harvest. Grain price increases are impacting outside of Ukraine's domestic market, i.e., it has repercussions on the world food market. The price increase makes it more difficult for the numerous nations that depend on Ukraine for their Wheat supply to afford food. Due to this, Wheat prices have also increased in other importing nations.

Rising freight costs, crude oil prices, and ongoing energy price increases were additional factors contributing to the market's upward trajectory. The end of Q2 saw the start of the Wheat harvest, which was finished in August 2023. The Poltava, Dnipropetrovsk, and Kharkiv regions are the principal Wheat-growing areas in Ukraine. The country's Wheat production in 2023, however, is anticipated to be significantly impacted by the conflict between Russia and Ukraine. Grain planting, harvesting, and transportation have all been hampered. This represents a substantial drop from the harvest of 2022 and would have a significant effect on the world Wheat market. Despite this, Ukrainian farmers claim that August's Wheat harvest was a good one. The majority of Ukraine's harvest was finished as of August 24, 2023, except for a few war-affected regions in the country's east.

As per the Chemanalyst anticipation, "The prices of Wheat are projected to continue its ascending pricing trend in the forthcoming period as well. Continuous rise in demand from the region and inquiries from all over the globe are expected to support the surging market trajectory. Besides this,  geopolitical tension between Russia and Ukraine is not going to end anytime soon, which is likely to hamper the trading momentum, resulting in higher export prices and delayed availability of the products.