Grain market insight: Dry and hot weather worsens wheat yields

摘要

Changeable weather conditions keep world major producing countries on course for higher prices. It is to be reminded that grain quotes have started to grow since the end of last week, and the upward trend looks pretty sustainable at the moment. Acute lack of rainfalls and, as a result, insufficient moisture in the soil, hurts spring wheat crops in the United States and Canada. On the one hand, dry and hot weather contributes to successful progress of the harvesting campaign in the Black Sea region. But on the other hand, wheat yield is declining in Russia, which may drive wheat production in the country to poorer results than expected. According to the IKAR agency, Russia may harvest about 81.5 million tonnes of wheat in 2021, although the previous estimates were hovering around 83.5 mmt.