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Comments By Our Users (1)
Whilst there are sufficent global wheat stocks, the price of the wheat have recently risen to two years highs.
So although, the importers and millers will be able to switch to Australian, Canadian and US wheat suppliers, the price prevailing is currently well above the announcement of the Russian export ban. These new prices will eventually be reflected in the supermarkets and it will have a direct impact on inflationary pressure.
In our experience, the increase in costs being passed on to the final consumer can be anything from 60 days to 120 days, as processors have charge an economic price for their products.
A secondary risk from the Eastern European drought is the impact on planting for next season. This is potentially a greater risk than the current price rally.
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