Global grain markets vulnerable to fresh shocks

GRAIN trade analysts have warned that only a high level of US wheat stocks stands in the way of a repeat of the 2007-08 global grain price shock.

Wheat stocks in all other big exporter nations outside the US – such as the EU, Canada, and Australia – are at about the same level as during the peak of the crisis in 2007-08.

The global market was therefore vulnerable to any fresh shocks such as weather-related problems in Argentina and Australia – and logistical logjams if the US has to ship its wheat exports at the same time as large harvests of maize and soyabeans.