IndexBox has just published a new report: ‘World – Wheat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The average annual wheat price in the U.S. is forecast to drop by 2% y-o-y to $250 per tonne in 2022, falling on reduced domestic consumption coupled with stable supply worldwide. The market balance will be buoyed by production gains in Argentina and the EU that will offset decreasing output in Brazil and Paraguay.

Based on the World Bank’s and USDA data, IndexBox predicts that the average annual price for Hard red winter wheat in the U.S. will drop by 2% y-o-y to $250 per tonne in 2022. Reducing domestic consumption is the key reason for that decrease, as feed use of wheat is expected to fall due to relatively high prices compared to other grains. The EU and Ukraine are to follow the same trend.

The global wheat supply will remain stable in 2022, as boosting production in Argentina and the EU should compensate for the expected decreases in Brazil and Paraguay and lower Russia’s beginning stocks. Argentina’s production is to surpass a record 20.5M tonnes this year.

In 2022, projected global trade will decline to 204M due to reduced supplies from the U.S. and Russia. American wheat remains uncompetitive in foreign markets, while the Russian government imposes quotas on export volumes to ensure sufficient domestic supplies and stabilize domestic food prices. Rising supplies from the EU could only partially offset that drop in the world’s exports.

Global Wheat Exports in 2020

Global wheat exports were estimated at 199M tonnes in 2020, increasing by 13% compared with the previous year’s figure. In value terms, supplies rose markedly to $45.3B.

The shipments of the five major wheat exporters, namely Russia, the U.S., Canada, France and Ukraine, represented more than half of global supplies. Australia (10M tonnes) ranks next in terms of total exports with a 5.2% share, followed by Argentina (5.1%) and Germany (4.7%). The following exporters – Kazakhstan (5.4M tonnes), Poland (4.7M tonnes), Romania (4.3M tonnes), Lithuania (4M tonnes) and Bulgaria (3.2M tonnes) – together made up 11% of the total volume.

In value terms, Russia ($7.9B), the U.S. ($6.3B) and Canada ($6.3B) constituted the countries with the highest levels of exports in 2020, with a combined 45% share of global supplies. These countries were followed by France, Ukraine, Australia, Germany, Argentina, Kazakhstan, Poland, Romania, Lithuania and Bulgaria, which together accounted for a further 44%.

Top Largest Wheat Importers in 2020

The purchases of the twelve significant wheat importers, namely Indonesia, Turkey, Egypt, Nigeria, China, Italy, Algeria, the Philippines, Brazil, Bangladesh, Morocco and Japan, represented more than a third of the total volume. The Netherlands (4.3M tonnes) occupied a minor share of global imports.

In value terms, the largest wheat importing markets worldwide were Egypt ($2.7B), Indonesia ($2.6B) and Turkey ($2.3B), together accounting for 16% of international purchases. These countries were followed by China, Nigeria, Italy, Algeria, the Philippines, Japan, Brazil, Morocco, Bangladesh and the Netherlands, which together accounted for a further 34%.

Source: IndexBox Platform