Notes From All Over -- Part 2 -- Wheat Prices Near A Six-Year High -- October 21, 2020

This may be a bigger story but we will start here, with record wheat prices [the link takes you to a Yahoo!Finance article which is a reprint from the Bloomberg story; the latter has the graphs but is behind a paywall]:

From Russian farmers literally steamrolling seeds into parched fields to China’s rising demand, the reasons for wheat’s rally to a six-year high keep growing.

With farmers in the U.S. to Black Sea battling drought, the poor plantings start is raising worries that the market could further tighten. That’s happening at a time when importers are building reserves to safeguard supplies, prompting fund managers to turn more bullish. 

While global stockpiles are at a record high, inventories in major exporters are near a six-year low, partly because of strong imports. In Russia -- which is set to reclaim its ranking as the top shipper -- sales are accelerating on robust demand ahead of a planned export quota next year. That’s putting strain on the country’s railways and causing ships to wait longer for cargoes. 

China is set to buy the most wheat in a quarter century and has already booked large amounts from the U.S. and France. Demand is also emerging in unusual places like Pakistan, which is poised to become a net importer. Many nations want to bolster reserves to protect against any coronavirus-related supply disruptions.

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Fact Checking

Wow, Victor Davis Hanson had a long essay today. Victor Hanson reported all the stories in one essay that the Bismarck Tribune is avoiding like the plague. No Pulitzer Prize for you!