Ukraine, the world’s fifth-largest exporter of wheat, says it plans to limit shipments of milling wheat to 8MT (-20% on last years 10MT) after severe drought wrecked European crops.
Ukraine is to sign a memorandum with traders to set limits for grain exports for the 2018-19 season, according to a statement from the Agriculture Ministry.
“We plan to set limits for milling-wheat export for the mid-term period in the beginning of the marketing season,” the ministry said. “Securing the domestic market and the stability of prices for key food are an absolute priority.”
Extreme heat and arid conditions means output in the European Union will be the second-lowest in a decade, while production in top shipper Russia will fall for the first time in six years.
Severe drought is also threatening crops in Australia, another key supplier.
Wheat prices continued their upward momentum during Monday trading, to an intraday high of $5.93 — levels not seen since 2014.
As the Grand Solar Minimum intensifies and losses mount, more and more countries will be forced to hold onto their own supplies. Global food trade will halt, prices will skyrocket, then shortages, then…