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Global wheat buyers are decreasing the purchases of future supplies due to the increase in prices and the volatile market. This lead to a rise in the price, which could affect consumers who are already struggling with food inflation.
Several buyers from key importers countries in Asia, the Middle East, and Africa are buying forward purchases only for two or three months which is different from the “normal” situation where they buy for up to six months.
“Global wheat inventories for the crop year to June 2023 are forecast to decline to 269.34 million tonnes from 276.70 million a year ago, a second yearly drop, based on the data reported by the U.S. Department of Agriculture (USDA)”.
Moreover, in Egypt, which is considered the number one wheat importer, a reduction of 3.4 million tonnes is estimated at the end of June 2023. This is the lowest decrease in the last 18 years.
On the other hand, in Indonesia, the second main buyer is
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