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Black Sea Wheat Keeps Bread Cheap

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Black Sea Wheat Keeps Bread Cheap

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Cheap Grain Chases Buyers

With supply plentiful, sellers are competing on price. Importers are favouring lower-priced Black Sea wheat, leaving United States and European exporters to compete by trimming their premiums rather than raising prices, according to Milling Middle East and Africa, which put new-crop Russian wheat among the cheapest on the world market. The main risk to this calm is weather, with forecasters watching for a possible strong El Niño that could dent harvests in Australia and Argentina.

Nigeria imports the bulk of the wheat behind its bread, flour, semolina and pasta, so a well-supplied global market can ease input costs, even if a weak naira and freight charges blunt some of the benefit. FoodPrices Nigeria tracks verified retail prices across Lagos markets, where the world wheat balance eventually reaches the bread counter.

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