Barclays Bank recently announced that by the arid climate impact of the American, the market supply of wheat was reducing. Global cereal market in the past few months had to quickly absorb the supply of corn and soybean markets, but from a global perspective, the market supply of wheat began to decline quickly.
People questioned that in the current season whether the wheat market supply and market demand is uncoordinated? Barclays Bank said:"we emphasize global wheat production will support the prices trend ( linked to the Black Sea region of the lower crop yields and we further predicted Australia and Argentina crop yields decline ), and the lack of the exports in the Black sea region will highlight the export demand of the other areas.
Barclays Bank continued said:"It is true that the wheat market prices has been further consolidated, and we expect the World Agricultural Supply and Demand Report (WASDE) in November forecasts for the global agricultural market supply to a further cut.
Barclays Bank expected the falling wheat market supply to be able to support the prices. Finally, Barclays Bank concluded that the tension in the global wheat market supply mainly concentrated in high grade wheat products containing protein.
