Wheat Prices May Surge $80 Per Tonne Amid Logistics Cost Hike
Global wheat prices may surge by approximately $80 per tonne due to an expected rise in logistics costs, according to Ukrainian Minister of Agrarian Policy and Food Taras Vysotskyi. This increase could lead to consumers spending an additional $16 billion on grain purchases worldwide.
However, higher wheat prices do not necessarily translate to greater earnings for Ukrainian farmers. The main obstacle is the sharp rise in logistics costs, which has already increased by around $50 per tonne.
The global market is currently supported by the active harvest season in Northern Hemisphere countries, limiting the increase in grain prices. But Vysotskyi warns that the pricing situation may become clearer in October, when wheat exports from Ukraine and Russia play a crucial role in the market.