Supply chains driving wheat prices, not shortages

Key points

• Global wheat prices are strengthening, but not because the world is short of grain, according to new research from agribusiness bank Rabobank. RaboResearch analyst Vitor Pistoia said the market is pricing the reliability of grain deliveries, with geopolitical risk and supply-chain disruption driving prices.
• Black Sea exports have been heavily affected, with shipping route disruptions cutting export volumes by roughly seven million tonnes between July and September.
• For Australian growers, shorter sailing times to Asian markets offer a freight advantage.