In early August, a press release from ISMEA, a services company for agriculture and food markets, warned that it was possible. “Hot summer”, based on the price of wheat. With the risk of price rises to record levels of the 2008 crisis.
According to Ismea Trends, wheat from North America reached 372.14 Euro / tonne (+ 18.9% economically) in July, while national markets recorded a 10.6 increase. Bologna (327.40 euro / t), Milan 10.4% (326.75 euro / t) and Focia 11.1% (330.50 euro / t) compared to June.
Among the reasons for the decline in wheat production are rising prices, drought and record temperatures in North America and July floods in Central Europe.
This rather protracted dynamic was underscored by Ismia in its August 4 report. Bringing prices closer to record levels Recorded during the previous market fire in 2008.
Causes Drought in North America
To create these enhancements, The decline in crop yields in Canada and the United States this summer of 2021 has been characterized by persistent drought, With a contraction of global inventory due to demand, is firmly established at the upper levels of supply.
We recall that between June and July, parts of Canada and the United States were hit by a historic heat wave. In some parts of Canada, one of the largest wheat producers in the world, it has reached 50 C.
According to an update from the IGC (International Grain Council) a month ago, Canadian supply is expected to fall to its lowest level in eight years (27% in 2020), while production to the United States is expected to be halved. Significant decline in wheat production.
The price of local wheat has also increased in Europe and Italy due to the extreme weather events reported this year. Of these, the July floods in Central Europe.
Potential effects on pasta production
Such a sharp rise in wheat prices could lead to one Significant increase in pasta prices. The shortage of wheat will lead to an increase in the production of much-loved and consumed food in Italy in the future.
In view of the international demand for pasta, it is necessary to look at the evolution of the coming weeks, which saw an increase in prison months in 2020, and then reduced this year.
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